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6 Ways the New Trump Administration Could Impact Your Business |
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What Trump’s past and future policies could mean for your small business. |
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President-elect Donald Trump. Photo: Getty Images As we gear up for another four years of presidency under Donald Trump, let’s consider how his previous policies and potential future stances in areas such as taxation, regulation, and economic policy could directly affect small businesses. 1. Tax cuts and incentives The 2017 Tax Cuts and Jobs Act lowered the corporate tax rate and created a deduction of up to 20 percent for small businesses. Trump seeks to make the act permanent, keeping the current lowered individual tax rates and maintaining the increased standard deduction. Trump recently proposed lowering the corporate tax rate to 15 percent from 21 percent for businesses manufacturing domestically. However, key proposals within Project 2025 suggest rolling back several federal support programs that currently benefit small businesses. This includes eliminating Small Business Administration direct lending programs, which support small businesses during natural disasters, as well as cutting SBA initiatives for innovation and entrepreneurial development. Additionally, Project 2025 aims to defund the Minority Business Development Agency, which assists minority-owned small businesses, and proposes to eliminate programs that support workforce training, export assistance, and capital access. For rural small businesses, the plan would end the Essential Air Service program, impacting access to vital commercial services in underserved areas. 2. Trade policies and tariffs Trump intends to increase tariffs, especially on Chinese goods. Small businesses that import materials and goods will face higher prices, which could be passed on to consumers and lead to reduced margins and supply chain disruptions for small-business owners. However, because tariffs could make foreign products more expensive and encourage U.S. manufacturing, certain domestic industries might benefit from these policies. This could also create more opportunity for small businesses to be a stronger part of the domestic supply chain. 3. Regulatory rollback Trump has historically supported deregulation, and business owners can expect this to continue in his upcoming term. Small businesses may benefit from reduced regulatory costs and oversight, yet we could also grapple with fewer protections in certain sectors. 4. Support for veteran-owned small businesses In 2019, Trump said his administration would continue working to create an economic environment that fosters growth and prosperity for veterans. Trump cited initiatives offered through the SBA’s Office of Veterans Business Development, such as Boots to Business, that help military personnel apply the skills and values they learned in the armed forces to their entrepreneurial endeavors. Hopefully, Trump’s support of veteran-owned small businesses will continue in his second term. 5. Immigration and labor It’s safe to assume that a Trump administration will once again tighten immigration policies, which could affect small businesses that rely on immigrant labor, such as in the agriculture, construction, and hospitality industries. 6. Health care While Trump has shared that he will not attempt to repeal the Affordable Care Act, business owners can expect changes to health care overall. His administration could reduce ACA benefits, potentially increasing health care costs for small businesses. Trump might also cut subsidies and expand options for health savings accounts, which would provide tax benefits for businesses and shift more costs to employees. I encourage my fellow business owners to continue to do what we do best and stay flexible. As we adapt to future evolving policies under a Trump administration, we have the opportunity to seek out new markets, reexamine supply chains, and take advantage of potential tax cuts and incentives. What you control There is certainly a lot of pontificating concerning what the new administration might or might not do. The most important thing we need to focus on is our business and what we can control. Continuing to grow our customer service culture, in order to generate a memorable customer experience, will always assure a strong bottom line. Stay flexible and monitor your customer’s experience, also challenge your team to come up with new ways of building relationships with your customers, without adding expense to the bottom line. You’ll be amazed at the creative ideas they will come up with. Give us a call, we’re here to help you measure your team’s relationship building. Services
SYDNEY SLADOVNIK AND CARL PHILLIPS |
