Navigating a Second Trump Term: a Communications Playbook for Asian Businesses

Donald Trump has begun his second term of office as the US President. His return to the White House has a range of potential implications for APAC markets, and the region’s business leaders are bracing for impact. His "America First" trade policies, particularly tariffs on foreign goods, could broadly impact various sectors from agriculture to finance, manufacturing, electric vehicles, renewable energy and semiconductors. His appointments in key cabinet positions and supportive roles – such as Marco Rubio as Secretary of State and Jeffrey Kessler to lead the Bureau of Industry and Security – combined with the possibility of expanded sanctions on China and Hong Kong among others, is generating considerable uncertainty. These policies may negatively affect many Asian businesses, potentially depressing earnings and weakening the outlook for regional stocks in 2025 and triggering the risk of capital flight.

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In a possible signal of what is to come, the outgoing US administration recently added China’s most valuable company, Tencent Holdings, to its list of Chinese military firms. Its shares slumped 7.3% in Hong Kong on the back of the news and shook investor confidence in China’s tech firms.

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However, Asia has been learning to adapt since the last Trump presidency and the Biden administration continued many of his policies. Regional connections, notably between the Middle East and China/Hong Kong, are deepening to broaden investor bases. Furthermore, many Chinese companies listed in the US or A-share markets are seeking secondary listings in Hong Kong as a protective measure. Moves like these help build resilience.

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Preparing for the Trump 2.0 Era: A Communications Strategy

Getting your communications in shape for unpredictable policy shifts and heightened market volatility means you need to get proactive and be nimble enough to stay ahead of the challenge. An initial risk assessment is crucial taking in potential impacts on supply chains, customer base and wider industry. It’s an assessment that informs messaging that addresses investor concerns and fosters confidence.

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A comprehensive plan should encompass:

• Key Messages:?Communicate resilience, adaptability, diversification strategies, and long-term growth potential.
• Target Audiences:?Tailor messages for regulators, investors, customers, employees, and media.
• Communication Channels:?Utilize diverse channels starting with owned websites and social media, and also including earned and paid media for effective outreach.
• Crisis Communication Protocol:?Prepare for unexpected events or negative news with thorough scenario planning and clear response procedures.

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Key Communication Strategies:

• Project Optimism and Resilience:?Highlight opportunities within Asia, diversification efforts, and the company's adaptability to changing trade landscapes.
• Avoid Pessimistic Commentary:?Refrain from negative public statements that could exacerbate investor concerns or be misinterpreted.
• Showcase Business Strengths:?Articulate the company's unique value proposition, growth drivers, and risk mitigation strategies. Emphasize competitive advantages and market leadership.
• Prepare for Rapid Change:?Develop robust monitoring systems to track geopolitical and trade policy developments and adjust strategies accordingly.
• Prioritize Transparency:?Maintain open and consistent communication with stakeholders, providing regular updates and proactively address concerns.

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Navigating Uncertainty

Accurately tracking the dynamic landscape and developing an informed communications strategy are essential for navigating the uncertainty a second Trump term may bring. By staying informed and agile, businesses can respond effectively to policy shifts and market fluctuations. Firms like Burson, with experience in navigating geopolitical uncertainty, can be valuable resources in developing these strategies.

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