Since taking office, Donald Trump has thrown the American business world into palpable uncertainty. The flurry of executive orders already impacts several sectors, with looming measures targeting immigration and tariffs.
Companies on high alert
In Manhattan, JP Morgan Chase has set up a war room to assess the potential fallout of the president’s executive actions. Meanwhile, Mattel executives brace for a price hike on the iconic Barbie doll, manufactured in China. Tariffs could push the price from $20 to over $31.
Costco, the third-largest retailer in the U.S., faces mounting pressure after refusing to abandon its DEI (Diversity, Equity, and Inclusion) program, a target of Trump’s policies. Calls for a boycott have already emerged, hinting at a brewing conflict.
Immediate impacts
Some decisions have already had tangible effects. Executive orders banning federal agencies from funding programs based on characteristics such as gender or race force government suppliers to certify compliance, impacting around 20% of the American workforce.
Additionally, the suspension of funds for climate and energy laws enacted under the Biden administration has caused widespread concern. Despite previously approved subsidies and loans, the funds have been frozen—a move likely to be challenged in court.
Uncertain future measures
Some prospective actions remain unclear. The potential rollback of subsidies for electric vehicles and Congress-approved tax credits is a significant concern. Wind and solar companies are responding by hiring Republican-linked lobbying firms.
Immigration policies are another source of anxiety. Industries such as meatpacking, agriculture, and healthcare heavily rely on immigrant workers. In California, a citrus producer reported temporarily losing 70% of their harvest crew following a border agent raid.
Tariffs: an economic threat
The primary concern remains tariffs. A tax on Canadian crude oil—which accounts for 60% of U.S. imports—could wipe out billions in profits for refiners. The auto industry would face even greater challenges. A Wells Fargo study estimates that tariffs on imports from Mexico and Canada could cost General Motors, Ford, and Stellantis between $13 billion and $56 billion, potentially dampening the enthusiasm of Trump-supporting auto workers.
