In a perfect world, economic developers could count on a predictable context to guide their communities, businesses, workers, and stakeholders to prosperity. Unfortunately, that’s not the world we live in. When unpredictable events and circumstances threaten the stability of our regions, whether in the form of natural disasters, pandemics or political and economic crises, we must be prepared to react. The current uncertainty around tariffs between the United States, Canada, Mexico and other countries has been a source of serious concern for economic developers everywhere. RBC’s Chief Economist, Frances Donald believes the proposed 25% tariffs, the most significant since the Smoot-Hawley tariffs of the 1930s, would be “one of the largest shocks in almost 100 years to the North American trading system.” The tactics outlined below can help economic development professionals guide their communities through the uncertainty and trade disruptions caused by tariffs.
The following tactics can be a powerful part of your EDO tariff toolkit. Not all of these will be appropriate for any particular place or context, so pick and choose the ones best suited to your purposes.
Tactical tariff tools for EDOs
1) Communicate leadership – Your stakeholders want to know that you know what they are facing. This communication can happen in regular emails, social media posts, media statements, or in-person meetings (often in combination). Acknowledge that they may be in difficult positions and feel worried or frightened. Let them know you are studying the situation and taking steps to help them address it as best as possible. Keep up a steady pace of communication updates as the situation unfolds.
2) Consider your choice of words and tone – As a leader, you don’t want to inflame already contentious situations or cause panic. You may feel strongly about the crisis, and while it’s often appropriate to connect on an emotional level with people in difficult times, consider that some words, phrases, and terms can make things worse instead of better.
3) Listen to your stakeholders – They have expertise in their areas of focus and can help you provide the most effective forms of support. Regularly consult with them as situations evolve and consider how they ask to be helped. Listening and validating (which isn’t necessarily the same as agreeing) can go a long way to assisting stakeholders to feel heard and consulted.
4) Ensure your organization is properly informed – This can be difficult in emergent and challenging conditions. Still, your stakeholders will rely on your team to have up-to-date information to guide any decision-making.
5) Tariff impact assessments – Provide your area businesses with data and tools to analyze how tariffs may affect their costs, supply chains, and pricing strategies. The uncertainty during this 30-day pause makes it difficult for businesses to plan their next moves effectively. Making high-quality data available would be particularly useful for small and medium-sized businesses that may not otherwise have access to this information.
6) Compile and share resources – Develop and share a dynamic list of organizations, associations, initiatives, and resources that may be able to provide specific and more specialized assistance, whether in the form of business loans, government programs, targeted wage subsidies, or other actions.
7) Explore market diversification – Help local businesses explore new international markets (e.g., EU, Asia, Latin America) through trade missions, market research, and government export programs.
8) Be the matchmaker – Connecting different businesses and organizations to solve new and unforeseen problems can be enormously helpful during crises and emergencies. For example, the pandemic revealed that there are often surprisingly creative solutions to supply chain issues and product shortages when you use your experience and knowledge of businesses in your region. Economic development organizations can also be instrumental in seeking new business connections in other countries with trade missions.
9) Seek out partnerships – Other business, workforce, and community organizations can work with you, and it’s always reassuring to members to see this kind of collaboration. Different levels of government may also have resources and initiatives developed to complement your work.
10) Develop an action team focused on your community – Coordinate a response team with leaders from business and labour to advise on strategies to protect the most at-risk sectors. For example, a town impacted because their manufacturing businesses are imperilled will likely see knock-on effects at local restaurants and stores as people decrease spending. Communicate progress to your stakeholders.
11) Prepare a workforce response – Tariffs may disproportionately impact certain businesses or an entire sector in your region. If workers can find themselves out of jobs, develop reskilling and workforce development initiatives.
12) Coordinate or strengthen your shop local campaign – Bring your community together with efforts to encourage a local focus for consumer and business purchases.
13) Advocacy – Your EDO may be a strong voice to advocate for your community’s industries, businesses, and workers. Based on what you have learned from meeting and listening to them, partnering with related organizations, and researching resources, put your official voice to work, lobbying for the changes and help they need.
I’m here to discuss your economic development or B2B communications and marketing strategy. Let’s connect – alissa@sklar-consulting.com to schedule a meeting for your organization.