With a new administration, businesses are watching for policy changes that could affect their plans. New regulations, executive orders, and court decisions are being released daily, sometimes with little warning. Sometimes these changes open new opportunities, while others bring challenges that disrupt operations.

While uncertainty is part of doing business, companies can take steps to manage it. Staying informed and flexible can help organizations adapt. Those that plan for multiple scenarios will be better positioned to respond regardless of how policies evolve. will be better prepared.

Key Policy Areas

Trade and Tariffs

A new 25% tariff on imported steel and aluminum is set to take effect in the coming weeks. Higher costs could hit manufacturers, construction firms, and real estate developers, affecting supply chains, pricing, and profitability. Prior to that announcement, the administration proposed a 25% tariff on Canadian and Mexican imports. These policy changes are expected to create additional challenges for businesses managing cross-border operations.

Recent U.S. tariffs on Chinese goods have already triggered retaliation. Trade disputes often lead to counter-tariffs, raising costs for U.S. exporters, limiting access to foreign markets, and complicating global supply chains. Businesses that rely on international trade will want to prepare for potential disruptions and new regulations.

TCJA and Tax Policy

Key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) are set to expire in 2025. This leaves many businesses uncertain about future tax obligations. Corporate tax rates, individual tax rates for pass-through entities, and the 20% QBI deduction could all be affected. Proposed changes to estate tax exemptions may also impact long-term succession planning for family-owned businesses.

IRS Challenges: Just as tax season ramps up, the IRS will be operating with fewer resources. More than 6,000 employees were recently laid off, with additional cuts expected. The National Taxpayer Advocate (NTA) has already flagged the agency’s ongoing hiring and retention struggles, warning that staff shortages are slowing tax processing, audits, and customer service.

For businesses, this raises big questions. Will audit rates decline, particularly for high-income taxpayers and corporations? Could tax processing delays complicate compliance? What happens to ongoing enforcement efforts? As the IRS faces growing uncertainty, businesses should prepare for longer wait times and potential changes in regulatory oversight.

Workforce and Labor Policies: Labor shortages continue to affect key industries, driven in part by changes in immigration policies. At the same time, the federal government is considering a reduced role in workplace safety regulation, which could give more oversight to state and local governments. If this happens, businesses may face a patchwork of compliance requirements across different jurisdictions.

Meanwhile, artificial intelligence is also reshaping the workforce in real time. This type of automation can improve efficiency, but it also raises new ethical questions about worker protections and privacy laws. As businesses adopt new technologies, they will need to find a balance between innovation, compliance, and workforce planning.

Healthcare Policy and Insurance Markets: Healthcare policy is a moving target, with potential regulatory updates on the horizon that could impact how employers provide coverage. Rising healthcare costs remain a challenge, and some employers are beginning to explore alternative plan structures to balance expenses with employee benefits.

Federal healthcare programs, including Medicare and Medicaid, may also see changes to reimbursement rates and eligibility criteria. This could affect provider networks and overall healthcare costs, with potential effects on employer-sponsored coverage. Businesses will need to stay informed as policy details come out.

Infrastructure and Government Spending: Federal infrastructure investments, including those under the Inflation Reduction Act (IRA), have direct implications for construction, transportation, and real estate. Delays, budget reallocations, or new policy priorities could impact project timelines and workforce planning.

Energy policy is still a question, with government incentives for renewable energy, electric vehicles, and climate initiatives likely to change. Businesses investing in sustainability will want to track policy developments that could affect long-term strategies.

Nonprofits and public-sector organizations that depend on federal and state funding are also dealing with new challenges. Spending freezes are likely to disrupt essential services and financial planning. Organizations will want to start looking into alternative funding sources.

Economic Outlook

Federal Reserve Chair Jerome Powell has said that interest rates will hold steady for now, giving businesses some stability. However, inflation continues to shape financial decisions as companies rethink costs and pricing strategies. While lending conditions haven’t changed much, businesses are closely watching credit availability and financing costs, especially those planning expansions or long-term investments.

Market confidence is strong, bolstered by economic growth and a surge in consumer spending — the fastest in two years. Still, concerns over inflation, interest rates, and trade policy continue to influence financial markets and investment strategies. Businesses and investors are weighing risks carefully and adjusting their strategies in response to economic conditions.

Strategies for Resilience

While the unknown presents challenges, organizations can take proactive steps to manage risk and build stability:

  • Scenario Planning: Developing contingency plans for multiple policy and economic outcomes enables faster, more informed decision-making.
  • Risk Management: Assessing vulnerabilities, implementing safeguards, and stress-testing financial strategies help businesses prepare for disruptions.
  • Diversification Strategies: Expanding revenue streams, markets, or supply chains reduces reliance on any single factor and strengthens resilience.
  • Regulatory Monitoring: Staying informed about pending legislation and policy changes allows organizations to anticipate direction and adjust.

Looking Ahead

No one knows the future, but organizations can control how they respond. Those that anticipate risks, diversify their strategies, and track trends will be in a stronger position for long-term growth. For more information on creating stability through strategic planning, contact PBMares Tax Partner Chales Dean Smith, Jr.