What CEOs Need to Hear from Their CHROs on Tariffs and Labor

The Trump administration’s proposed new tariffs are sparking vigorous conversations in boardrooms across America about operational costs, supply chain logistics, profit margins, and inflation — seemingly everything except the workforce. Now is the moment for HR leaders like you to lead the way through the storm we know is coming. We need to step up to help CEOs and board members understand how these policies affect our workforces, the broader labor market, and the global challenges ahead.

A strong partnership between CHROs, CEOs, and boards can mitigate disruption and position the organization for long-term success. By reframing challenges as opportunities, HR can elevate its role as an essential driver of organizational resilience and innovation. However, CHROs and other HR leaders must not wait for the problem to come to them. Instead, they should take a proactive approach and show CEOs and boards why HR is an essential strategic partner, no matter what changes tomorrow brings.

Aligning to Survive and Thrive

CHROs must help their CEOs and boards understand how tariffs impact the workforce and how those workforce issues impact the broader business strategy. 

Your employees are most likely worried about the short-term pocketbook impacts of these tariffs. It falls to HR leaders to create a sense of stability for both the business and its workers and keep everyone focused on long-term goals.

Rising prices may mean workers will feel pressure to seek out higher-paying jobs at a moment when rising operational costs make it harder for organizations to raise pay. Retaining existing workers and helping them reach new productivity peaks while controlling costs will be essential to navigate this challenging moment.

You need to create a business framework for addressing a talent crisis of this scale. Your CEO and board may or may not understand the talent implications of the current headlines. It’s your job to make sure you’re course-correcting before the organization starts to veer off-target. 

Framing your talent challenges in strategic workforce planning terms will resonate with CEOs and boards. Instead of discussing workforce issues in isolation, tie them directly to revenue goals, operational efficiency, and competitive advantage. This approach shows HR leadership is anticipating challenges and actively finding strategic solutions.

Framing Conversations for CEOs and Boards

Effective communication is the bridge between HR’s insights and leadership’s decisions. While the specific solutions you’ll want to pursue at this moment will vary by industry and a host of other factors, there are three core tenets you should consistently emphasize in communications with your CEO and board.

• Provide Context: Begin by linking labor market dynamics to the organization’s strategic priorities. Come equipped with analysis that attaches numbers to the challenges you face and share specific examples. For instance, explain how tariffs might constrain access to skilled talent in key regions or increase labor costs. Use data to emphasize the importance of acting now to mitigate risks and seize emerging opportunities.
• Focus on Solutions: While it’s important to outline challenges, put equal weight on actionable solutions. Propose tailored strategies to demonstrate HR’s ability to address issues effectively. If tariffs require changes in supply chains, HR could lead efforts to expand sourcing pipelines or strategically redeploy employees. Position these initiatives within the context of broader organizational goals, such as sustaining productivity and enhancing brand positioning. Have both short- and long-term plans for responding to these issues tomorrow as well as months from now.
• Create a Shared Vision: Inspire confidence by reminding leadership of HR’s proven track record during past challenges. Reflect on lessons from the pandemic, when HR leaders transformed workplaces swiftly and effectively. Just as HR successfully supported the organization then, it stands ready to lead through this new challenge now.

HR’s Strategic Role in Uncertain Times

The current landscape demands more from HR than tactical execution — we must partner as strategic problem-solvers at the highest level. Tariffs are one of many unknowns with the potential to reshape the labor market and test organizational agility. By preparing proactively and aligning workforce strategies with broader business goals, CHROs can position their organizations to thrive no matter what lies ahead.

Jim Link is the CHRO of SHRM.

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