Fan Casting Tactful Translation in Sort by Tropes

It often happens that in international business, politics, or two sides meeting before a battle, that a translator is needed for the two (or more) sides to understand each other. One side will either intentionally or unintentionally say something insulting, offensive, personally distasteful to someone on the other side. As the translator what do you do? If you're smart, you translate the spirit of what was said or is important, while leaving out all the insulting, offensive, or just plain stupid stuff that would only get in the way or complicate things.