Now that Donald Trump has been elected as the next president, organizations are looking toward the future to see how their business might be impacted under the new administration, which promises to be drastically different than that of President Obama’s.
While there is a lot of uncertainty surrounding the incoming president’s policies, here are 5 ways a Trump presidency may affect your business in the coming months and years.
1) Trade Changes
Trump has vowed to upend current U.S. trade policies and even said he may end U.S. participation in some trade deals like the North American Free Trade Agreement (NAFTA). If Trump cuts off or limits U.S. trade across the world, it could have vast repercussions for global markets, not all of them necessarily good. It could also affect the prices of goods and services bought from and sold overseas, changes that could affect service providers’ bottom line depending on their purchasing habits.
Until Trump makes definite moves, however, uncertainty will remain about how the presidency will affect the global business and economic climate, which means companies should move cautiously in the coming year until they know more.
2) Net Neutrality
Net neutrality, a set of regulations that basically allow pretty much anyone with an Internet connection to have equal access to online content, could be threatened under the Trump administration. While the Obama administration favored net neutrality, Trump has called it a “top down power grab” and an “attack on the Internet” by Obama, making it clear he is not supportive of the measures.
However, similar to his trade policies, it’s still unclear if Trump will create legislation to repeal net neutrality and make Internet access more restrictive. If he does, businesses may find themselves playing by a different set of rules when it comes to Internet access. This scenario could provide new opportunity for creating solutions to adhere to these rules or to help customers navigate any new laws governing carrier transport.
Trump outlined on his campaign website that cybersecurity will be a priority, promising that once in office he will “order an immediate review of all U.S. cyber defenses and vulnerabilities, including critical infrastructure, by a Cyber Review Team of individuals from the military, law enforcement, and the private sector.”
This new focus on cybersecurity could mean service providers in the security space are called upon to help the president evaluate the U.S. government’s position. It also may mean new legislation that requires tech companies to double down on security and make new investments or provide new services in to shore up U.S. cybersecurity defenses.
4) U.S. Business and Job Market
Trump is well known for his longtime career in business, and this background along with campaign promises to bring offshore jobs back to the United States and create more jobs at home has the potential to be good for U.S. companies across the board. As the tech industry currently employs about 12 percent of the U.S. workforce, this could create a positive economic climate for service providers.
One thing businesses should consider is Trump’s tax plan, which favors lowering the corporate tax rate from 35 percent to 15 percent. This could benefit companies depending on their size, but also could have a negative impact on smaller firms if they end up taking more of the tax burden.
5) H-1B Visas
Solution providers may have to search primarily within the United States for top technology talent under a Trump administration, as the president-elect has suggested he will limit or end the H-1B visa program that many technology companies use to give employment to foreign workers.
While Trump has flip flopped on the issue, he said at one point during his campaign that while he himself uses H-1B visas within his own businesses, they should be discontinued. Later he proposed raising wages for H-1B visa holders while at the same time favoring U.S. workers over foreign ones.
Whether Trump makes good on his plans remains to be seen, but ending or changing the program could significantly affect the hiring of workers going forward for companies in the technology field.
What Trump and a Republican Congress Will Mean for the On-Demand Economy
Political allegiances aside, millions of people around the country are all wondering what a Trump presidency will look like. We’re no different.
That’s why on Tuesday Nov. 29th our President & Co-founder, Jeff Wald, a nationally recognized labor expert will discuss how your business may be impacted by the incoming Trump administration. Join 200+ execs from leading companies around the country who’ve already reserved their seat. Look forward to talking to many of you next week!