How IR Teams Should Communicate on Tariffs and Market Volatility

In a period marked by growing uncertainty over tariffs and macroeconomic risks, investor relations (IR) teams in Mexico face a big challenge: keeping stakeholders calm and confident. Effective communication, transparency, and adaptability are now essential.

Here are the key points to focus on:

1. Quantify the Impact Clearly

• Investors are struggling to update their financial models.
• Management must help quantify potential tariff impacts across the P&L, even if scenarios are still evolving.
• Share baseline and pessimistic cases to show preparedness, not just optimism.

2. Stay Focused on Resilience

• Highlight financial strengths: strong balance sheet, liquidity, revenue diversification, cost control.
• Investors want to know how ready you are for a volatile environment.

3. Give Concrete Examples

• It’s not enough to say, “We have a plan.”
• Show how your business model or supply chain would adapt to tariffs, what actions are under consideration, and real examples of past adjustments.

4. Understand Demand Risks — but Don’t Guess

• Demand is weakening across sectors and regions.
• Avoid making demand forecasts unless you are truly confident in your assumptions.
• Focus on what you can control.

5. Identify and Fill Information Gaps

• Proactively ask investors what additional data or disclosure they need to make decisions.
• Customizing your messaging for different stakeholder groups improves credibility and trust.

6. Stay in Touch — Especially Now

• The greater the uncertainty, the more you need to engage.
• Respond quickly to questions, stay transparent, and reinforce your commitment to long-term value creation.

7. Guidance – to Give or Not?

• Fewer companies —in the US, at least— are providing forward-looking disclosures. Currently, only 28% of S&P 500 companies are giving full-year guidance (vs. 36% last year), and just 13% have raised guidance (vs. 34%).
• If you are really uncertain about your company’s outlook, withdrawing guidance may be a better plan than sticking to something you have lost faith in (although withdrawing guidance has a market impact too).
• As an example, Volaris issued the following statement in its 1Q25 report: “Considering ongoing macroeconomic uncertainty, Volaris is not providing full-year 2025 margin guidance. The Company will continue to closely monitor demand trends and economic developments and will provide an update once visibility improves.”

In Mexico, these global trends make it even more important for IR teams to show leadership, resilience, and strategic clarity. Clear, proactive communication will help investors stay confident through uncertainty.

If you would like support refining your IR messaging, at Miranda IR we would be happy to help.