Key Areas for Business Owners to Watch in the Trump Administration’s Return

With Donald Trump winning the 2024 U.S. presidential election, business owners are preparing for a renewed focus on his hallmark economic policies. Trump’s past approach included sweeping tax reforms, aggressive deregulation, a strong emphasis on American manufacturing, and a complex trade policy that aimed to prioritize American interests. As he returns to office, business owners should be aware of several key areas that could shape their strategies and impact their operations.

1. Renewed Focus on Tax Cuts and Business-Friendly Policies

Trump’s administration previously enacted the Tax Cuts and Jobs Act (TCJA) of 2017, which significantly reduced corporate tax rates. A return to this approach could mean further tax cuts or incentives aimed at stimulating domestic growth. Small to medium-sized businesses could see benefits, such as deductions for pass-through entities, which were a focus in his earlier term.

• What to Watch: Potential additional tax cuts, especially those that could benefit small and medium-sized enterprises (SMEs). Also, pay attention to changes in capital gains taxes and estate taxes, which could affect business owners planning for succession or sale.

2. Deregulation and Its Impact on Industry

Trump’s first administration was known for significant deregulation, especially in sectors like energy, healthcare, finance, and environmental protections. This approach was intended to reduce costs for businesses by eliminating what he saw as burdensome regulations. Business owners may anticipate similar measures in his new term, with possible regulatory rollbacks to encourage domestic manufacturing, construction, and resource development.

• What to Watch: If your business is in a heavily regulated sector like energy, manufacturing, or financial services, pay close attention to new deregulatory measures that could reduce operational costs but may also lead to shifts in compliance requirements. Additionally, be aware of any changes in labor and wage laws that could impact workforce costs.

3. Trade Policies and Tariffs: Focus on ‘America First’

Trump’s return likely means a resurgence of his “America First” trade policy, which could include tariffs, renegotiated trade deals, and efforts to bring manufacturing jobs back to the U.S. His previous term saw trade wars with countries like China, which resulted in increased costs for businesses reliant on imports. Although his stance aimed to reduce dependence on foreign production, it had mixed effects across industries.

• What to Watch: Businesses that depend on global supply chains, particularly those importing goods from Asia or Europe, should prepare for potential tariffs and disruptions. U.S.-based manufacturers may find new opportunities, but companies reliant on imports should assess alternative suppliers and stock up on essential materials to mitigate risks from any shifts in trade policy.

4. Workforce and Immigration Policies

Trump’s stance on immigration has historically been one of restriction, focusing on limiting the entry of undocumented workers and tightening visa policies. Business owners could face changes in workforce availability and hiring processes, particularly those in industries that depend on skilled foreign labor, like technology, healthcare, and agriculture.

• What to Watch: If your business relies on a diverse workforce or skilled visa holders, keep an eye on any changes in immigration policy or work visa regulations. Adjust your hiring plans accordingly, and consider exploring training programs to fill gaps locally if immigration restrictions affect labor supply.

5. Infrastructure and Development Initiatives

Trump has often emphasized the need for robust infrastructure, including improvements to roads, bridges, and other critical facilities, to boost the economy and create jobs. Business owners in construction, logistics, or related fields may find new opportunities if substantial infrastructure investments are prioritized.

• What to Watch: Infrastructure initiatives could create demand for construction materials, labor, and services, presenting opportunities for growth and expansion. Additionally, improved infrastructure can enhance logistics and supply chain efficiency for businesses across the board.

6. Health and Environmental Policy Changes

In his previous terms, Trump worked to dismantle portions of the Affordable Care Act (ACA) and reduce regulations on environmental protections, favoring a business-first approach over stringent compliance. His approach aimed to lower costs for businesses but also shifted more responsibility onto employers to manage healthcare benefits and navigate environmental concerns.

• What to Watch: Business owners should stay informed about any changes to healthcare policies that could impact employer-sponsored health insurance, as well as any shifts in environmental policy that may influence industry-specific compliance requirements or consumer sentiment. Sustainable practices could still be important, as public demand for environmentally responsible companies remains strong.

7. Renewed Focus on American Manufacturing and Technology

Trump’s previous policies emphasized bringing manufacturing back to the U.S., aiming to reduce dependence on foreign supply chains and bolster domestic production. This focus could bring investment opportunities in sectors like manufacturing, technology, and resource extraction, along with incentives for companies that relocate production to the U.S.

• What to Watch: Companies in manufacturing and technology should prepare for incentives or tax breaks for reshoring production. If your business operates in these sectors, consider planning for expansion or investment in U.S.-based facilities to benefit from potential incentives.

As Trump takes office again, businesses must remain proactive, staying informed about shifts in policy that could impact their bottom line. His administration’s focus on tax reform, deregulation, trade, and an “America First” agenda creates both opportunities and challenges for various sectors. By closely monitoring these areas, businesses can better anticipate potential impacts, adjust strategies, and seize growth opportunities in this dynamic landscape.