On January 20, 2025, President Donald Trump began his second term by signing a series of executive orders aligned with his "America First" agenda. These orders target key areas like immigration, trade, energy, and social policies, setting the stage for significant shifts in U.S. policy. Businesses operating globally, especially those interacting with U.S. markets or relying on U.S.-based talent, must stay informed about these changes. Here’s an analysis of the key policies and their potential impacts.
For more information on the new policies and their potential impact on your organization, please contact our Partner and Head of Transactions, Fiona Xu, at contact@consultils.com.
Trade Policies
The Trump administration’s trade policy aims to prioritize American industries, reduce trade deficits, and encourage domestic manufacturing. While no immediate tariffs were implemented upon taking office, the administration has signaled clear intentions to reassess trade agreements and potentially impose significant tariffs on imports.
Key Proposed Measures:
Reviewing Trade Agreements: Federal agencies are tasked with reassessing trade relationships with key partners such as China, Canada, and Mexico. This review may result in renegotiated terms to favor U.S. interests.
Proposed Tariffs: The administration has indicated plans for targeted tariffs, including:
25% to 60% on specific imports from countries with significant trade surpluses with the U.S., such as China.
10% to 20% universal tariff on all imports as a potential broad measure to bolster domestic production.
Implications for Businesses:
Supply Chains: Import-reliant companies should assess vulnerabilities and explore alternative sourcing strategies to mitigate potential cost increases.
Exporters to the U.S.: Businesses exporting to the U.S. should prepare for potential changes in pricing structures and trade terms.
Local Manufacturing: Foreign firms may consider shifting production to the U.S. to avoid tariffs and align with "America First" goals.
Immigration Policies
Employment-Based Immigration/Nonimmigration:
While no new executive orders have specifically addressed H-1B visas or green cards, Trump’s past statements and policies offer insight into what could be expected during his second term:
Support for the Tech Industry: Trump’s election success was closely linked to the support of influential business figures, notably Elon Musk, a firm advocate for the H-1B visa. Tech companies such as Apple, Microsoft, and Tesla heavily rely on H-1B visas to attract global talent, particularly in STEM fields. As a result, Trump is likely to continue supporting policies that benefit these industries to maintain U.S. competitiveness and innovation. However, the extent of Musk's influence on Trump’s immigration decisions remains uncertain.
Tighter Scrutiny and Compliance Measures: While Trump may support foreign workers in sectors like tech, he is also likely to enforce stricter compliance measures for H-1B visa petitions. This could include enhanced scrutiny, site inspections, and audits to prevent visa fraud and ensure proper use of the program. Given his concerns about foreign workers competing in the U.S. labor market, Trump may prioritize stronger enforcement of visa requirements. Businesses should prepare for more stringent checks and compliance demands as part of a broader effort to preserve the integrity of the H-1B program.
Green Cards and Merit-Based Immigration: Trump’s campaign proposals have included offering green cards to foreign graduates from U.S. universities, particularly those with STEM degrees, which signals a potential shift towards merit-based immigration. However, no concrete actions have been taken yet, and it remains uncertain when or if these proposals will be implemented.
Illegal Immigration:
President Trump signed order to secure U.S. borders and reshaping pathways for legal immigration, including:
Reinstating the "Remain in Mexico" Policy: Asylum seekers must stay in Mexico while their cases are processed.
Declaring a National Emergency at the Border: U.S. troops are deployed to support law enforcement in managing border security.
Suspending Refugee Resettlement: Refugee admissions are paused to alleviate resource strain on local communities.
Implications for Businesses:
Companies relying on H1-B workers should monitor developments closely, as stricter regulations or longer processing times could disrupt hiring plans.
Employers seeking to retain foreign graduates should stay informed about potential green card pathways to capitalize on policy changes if they materialize.
Energy and Environmental Policies
The administration has prioritized energy independence and reduced regulation for traditional energy sectors.
Key measures include:
Energy Emergency Declaration: Permits for oil, gas, and infrastructure projects will be accelerated,. and reduced restrictions on fossil fuel industries.
Scaling Back Renewable Energy Support: Federal support for large-scale wind farms is being curtailed.
Implications for Businesses:
Fossil Fuel Opportunities: Reduced regulation may benefit oil, gas, and other traditional energy sectors.
Renewable Energy Challenges: Companies in the green energy sector may face slower growth and reduced federal funding.
Cost and Infrastructure Planning: Businesses should monitor energy price fluctuations and align strategies with new priorities.
Social Policies
President Trump’s social policies aim to reshape cultural and administrative norms within federal agencies:
Biological Definitions of Sex: Federal policies now define sex strictly as male or female based on biological attributes.
Ending Diversity, Equity, and Inclusion (DEI) Programs: DEI initiatives in federal agencies have been terminated.
Implications for Businesses:
Companies must ensure alignment with federal policies while balancing inclusivity and societal expectations.
Organizations with public-facing operations may need to adjust internal practices to maintain a positive reputation.
Disclaimer: The materials provided on this website are for general informational purposes only and do not, and are not intended to, constitute legal advice. You should not act or refrain from acting based on any information provided here. Please consult with your own legal counsel regarding your specific situation and legal questions.
Fiona Xu, Esq. is the Partner and Head of Transactions of ILS.
She has extensive experience supporting global and high-growth technology companies on compliance and business needs. Her practice focuses on regulatory compliance across different sectors, with a focus on sector-specific regulations for artificial intelligence (AI) and medical devices. She supports multinational corporations in establishing and maintaining U.S. operations, managing legal and compliance challenges in various areas such as Privacy, Export Control, and CFIUS issues.
Email: contact@consultils.com | Phone: 626-344-8949
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