Trade associations: PR’s secret weapon during tariff battle

Tariffs are changing the world and businesses must adapt.

Individual brands and entire industries urgently need to communicate with customers, investors and legislators. However, doing so carries potential risks, such as political backlash or becoming the face of a controversial issue.

Trade associations provide a crucial advantage – offering strategic messaging, political advocacy and collective strength.

“Trade groups offer PR leverage,” said Mark Hass, a professor at Arizona State and former CEO of Edelman. “Many companies contribute resources to communicate about key issues, so they can all have a bigger impact than any company can have alone.”

This collaborative approach amplifies industry-wide messaging and serves as a protective buffer. It allows individual companies to take part in critical policy discussions without exposing themselves to direct controversy.

Philip Bell, president of the Steel Manufacturers Association, represents over 70% of American steel production. The association plays a pivotal role in shaping narratives around the industry and issues affecting it.

“During times of crisis, our role, as a trade association, is to develop, articulate and disseminate unified messaging for the steel industry,” Bell said.

Working together

In this political environment, few challenges are company-specific, Hass said. He stressed that trade groups should take the lead on industry-wide issues and serve as the primary voice in public debates.

The energy sector is currently taking this approach amid tariffs, given the significant amount of energy imported from Canada and Mexico. It relies on trade groups like the American Fuel and Petrochemical Manufacturers and the American Petroleum Institute, which have deep agency relationships and credibility in Washington.

“The truth is, most of the challenges facing one energy company confront them all, so there’s limited value in each company going its own way,” Hass said. “Pooling resources into a trade group gives the companies more leverage.”

However, in some cases, an individual company or CEO’s voice can be more impactful. While the auto industry relies on groups like the American Automotive Policy Council and the Alliance of Automotive Innovation, senior leadership sometimes steps in when needed.

“While I suspect the industry’s trade groups have been active behind the scenes, the Trump presidency has brought in outsiders that have complicated industry relationships,” Hass said. “That’s why we’ve seen the CEOs of Ford, GM and Stellantis take a more visible public role responding to the tariffs.”

Hass warned that a single company – often the one contributing the most resources – can dominate an association’s agenda. Brands should ensure their interests are well represented within the trade group’s priorities.

Hass declined to comment on whether he has any clients in the energy or automotive spaces.

Reacting to trends, not individual moments

The Steel Manufacturers Association doesn’t respond to every industry shakeup. Instead, they work with members and partners to identify trends and shape conversations around industry needs.

“We provide support but only advocated on their individual behalf if asked and if it makes sense for the organization to do so,” Bell said. “We strike a balance by advocating for issues that the vast majority of our members can agree upon.”

The biggest need right now, Bell said, is tariffs.

But while the 25% global assessments on steel and aluminum products are great for U.S. steel manufacturers, they also promise to create financial challenges, possibly cost increases, for consumers and other industries.

It was the job of the SMA to become the “go-to” source for all things related to tariffs for the industry, Bell said.

Once they learned tariffs would likely be a topic under President-elect Donald Trump, SMA worked to position itself as a go-to resource for policymakers and the media. On Dec. 2, 2024, before the Trump administration even took office, it released a five-point industry plan to ensure its message was heard “early and widely.”

“America’s steel industry is the backbone of our economy, building the roads and bridges that make up our infrastructure,” the statement reads. “Steel is critical to energy security, in particular our robust oil and gas production. A healthy steel industry is also vital to our national security, supplying the steel used in our munitions, tanks, battleships and aircraft carriers.”

Beyond the plan, SMA released a series of early statements to build support for tariffs and then, in February, followed up with a statement on Trump’s steel tariffs announcement “within minutes” of the president’s announcement.

It drew praise from the White House and interviews in the likes of BBC World Service’s Newshour. It also received coverage in the Financial Times, Le Mondeand trade publications such as Manufacturing Dive.

Most importantly, it showed unified industry support for the tariffs to lawmakers and the public, without dragging individual SMA members/steel manufacturers into the story. That’s important because the tariffs have become linked to further financial challenges and price increases across the globe.

“(Our role) is to respond in a way that clarifies important issues without causing legal, financial or reputational harm, Bell said.

How brands can best work with trade associations

Bell stressed that trade associations and members must have a two-way relationship. While SMA leads on industry issues, it relies on members to contribute as well.

Trade groups can be powerful amplifiers, Bell said, but they need concise, well-prepared input from their members.

“Our expertise is best used when companies help us develop carefully crafted key messages and talking points for the industry,” Bell said.

There may also be times when it’s more important for SMA’s members to advocate for their individual needs. Much like so much else with communications, it all comes down to the individual business needs of the party involved.

“We understand that often our members are their own best spokesperson’s,” Bell said. “They are closer to the issues that impact their specific challenges than we will ever be.”

Casey Weldon is a reporter for PR Daily. Follow him on LinkedIn.