In Today’s Washington, Reputation Management is Crisis Management for Foreign Companies

In today’s Washington, your public reputation isn’t just good business practice; it can become your most effective advocacy tool. The traditional advocacy playbook that does not leverage your public reputation should be avoided. Building relationships with relevant officials and working through back-door channels to get deals done – this may have worked for previous administrations, but this administration moves differently. With the current White House, high-visibility, media-facing engagements often carry just as much weight, if not more, as behind-the-scenes negotiations.

This holds especially true for foreign manufacturers looking to do business in America. The White House made it clear from the start that increasing domestic manufacturing is one of its key priorities. And with trade reforms like tariffs to pursue this agenda, foreign companies are actively seeking ways to reach deals with President Trump to invest in U.S. manufacturing and maintain their presence here.

To do so, you must be able to clearly tell your story of how your business benefits America. Due to this administration’s emphasis on the media and public discourse, companies with strong public narratives have significantly more leverage to navigate this new terrain than those operating solely through back-channels. Therefore, building an effective public affairs strategy is paramount for foreign manufacturers.

The Hyundai Raid: A Crisis and Reputation Management Wake-Up Call

The recent ICE operation at Hyundai’s $7.6 billion battery plant is a good example of what can happen to a foreign manufacturer without a sufficient public affairs strategy to guard its business in this regulatory environment. Over 300 skilled workers from South Korea were deported due to improper visas, causing significant production delays and potentially millions of dollars in monetary loss. Even Hyundai Motor Company CEO José Muñoz learned about the arrests through media reports, revealing a critical disconnect between the business and the administration.

What happened to Hyundai wasn’t just an immigration enforcement action; it was a stark reminder that in today’s Washington, standard operating procedures are changing, and companies must audit their activities for adjustments. And this must include a shift in their advocacy strategy that goes beyond just behind-the-scenes lobbying.

Aside from press releases and a public deal signing event at the White House with President Trump, the South Korean automaker has lacked a sustained public affairs effort that continually appeals to this administration, one that emphasizes its contributions to the American economy. Although the ICE operation at its plant may have been caused by a separate policy priority of immigration enforcement, the company could have insulated itself from this crisis if it built a public reputation that firmly establishes the brand’s image as not just another foreign company with potentially unlawful workers, but a net positive for this administration and the American people. Instead, it left itself vulnerable to law enforcement and regulatory uncertainties that threaten billions in investment.

Minimizing Corporate Risk Means Safeguarding Reputation and Shaping Public Perception

To minimize uncertainty and protect your business plans in the U.S., a long-term public affairs strategy is necessary to communicate effectively to this administration about how you fit into its “America First” vision. Nowadays, when regulators come knocking at the door with an agenda that is hostile to your business, foreign companies with strong public profiles as job makers and community partners are armed with protective political capital that pure lobbying cannot provide. Public perception is a key part of this administration’s decision-making, and successful businesses are the ones that can publicly showcase clear wins for this White House.

Smart foreign manufacturers, especially those with minimal reputation in Washington, should be adapting to this new landscape. The most sophisticated companies are building comprehensive Washington presences that leverage the administration’s media focus. This means narrating your investment’s story of improving the lives of the American people and the economy. This means speaking to this administration on the grounds of culture and emotion, not just policy and reason.

The Trump administration’s regulatory approach rewards companies that demonstrate clear American benefits and tell that story publicly and compellingly. The administration’s media-savvy leadership responds to well-crafted public narratives about American manufacturing resurgence, technological competitiveness, and economic nationalism. This requires close coordination between legal, communications, and government affairs teams that understand both traditional policy processes and current media dynamics.

The Hyundai experience offers a roadmap rather than just a cautionary tale. Foreign companies – whether those with an existing presence in the U.S. market or those looking to enter it – will be better positioned to navigate this new terrain with a two-pronged strategy that mobilizes traditional lobbying and advocacy in parallel with proactive public affairs, crisis communications, and stakeholder engagement.

For foreign manufacturers today, a public affairs strategy is no longer an accessory; it is a core component of risk management and deal execution.

Don’t forget to check out the latest monthly issue of Our Take!

Subscribe now