How Trump's 2024 Election Could Reshape Small and Mid-Sized Businesses: What to Expect and How to Prepare

Strategy & Organizational EffectivenessStrategic Leadership & Execution

Mar 25

Explore the strategic implications of Trump's 2024 policies on small and mid-sized businesses. Discover actionable insights and proactive strategies from Lauren Ashley Consulting to navigate tax, trade, regulatory shifts, and sustain your organization's growth and resilience.

Further analysis from our audio, Trump Policies and SMBS, 2025 Implications and Strategies:

Detailed examination of the Venezuelan tariffs and their geopolitical implications.
Extensive coverage of EU and Canadian retaliatory tariffs.
Additional practical scenarios illustrate how SMBs might respond strategically to new tariffs.

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Updated as of March 25, 2025

Disclaimer: This analysis reflects policies, proposed measures, and market conditions as of March 25, 2025. Due to the evolving nature of government policies, we recommend consulting official sources or professional advisors for the latest details affecting your specific situation.

Latest Updates
Overview of Trump's Policy Stance on Business
Infographic: Trump's Policies at a Glance
Industry-Specific Impacts
Regional and Size-Based Differences
Impact on Black-Owned Businesses
General Business Sentiment and Market Reaction
Strategic Recommendations for SMBs
Conclusion
Update Timeline

Latest Updates

March 25, 2025
- Tariffs:
  President Trump signed an executive order imposing a 25% tariff on all goods from countries that import Venezuelan oil. It is scheduled to take effect April 2, 2025. The order also authorizes tariffs on countries and entities that "do business with" Venezuela, broadening the scope of the policy beyond oil.[63][64][65][66] This includes indirect trade through third parties. Secretary of State Marco Rubio has discretion to determine which countries and entities are subject to the tariff.[67]
  The administration introduced a new trade tool—“secondary tariffs”—targeting Venezuela directly due to its alleged ties to the Tren de Aragua gang and accusations of regional destabilization.[67][68] Trump has claimed, without evidence, that Venezuela is sending criminals to the U.S.[63][64]
  Chevron received a temporary exemption to wind down Venezuelan operations by May 27, 2025.[69] Oil prices rose 1.5% following the announcement.[69][70] Countries including China, India, Spain, and Italy may face penalties.[64][68] The tariffs will remain in place for one year after a country ceases all business with Venezuela unless lifted earlier by U.S. officials.[64][66]
March 22, 2025
- Tariffs:
  A 20% tariff on all Chinese imports is currently in effect. Significant tariffs on Canadian and Mexican goods are confirmed. Additional tariffs are scheduled to be implemented on April 2, 2025. This date, informally referred to as 'Liberation Day' by some administration officials according to media reports, has not been formally named by the White House.[1][2][3][4][5].
- Canadian Retaliation:
  On March 13, 2025, Canada implemented retaliatory tariffs on nearly $30 billion of U.S. exports.[1][2]
- TCJA and QBI Extensions:
  The administration has announced plans to extend major components of the 2017 Tax Cuts and Jobs Act (TCJA),[4][6][7] including a potential extension of the Qualified Business Income (QBI) deduction, though specific legislation has not yet been introduced.[8]
  - Qualified Business Income (QBI) Deduction:
    The QBI deduction is currently set to expire at the end of 2025, potentially increasing tax burdens for pass-through entities.[9][10]

Overview of Trump's Policy Stance on Business

The Trump administration's policies create substantial shifts affecting tax, regulation, trade, immigration, and healthcare.

Tax Policy and Deregulation

Trump’s administration has proposed reducing corporate tax rates from the current 21% to 20%, including a potential special rate of 15% targeted specifically at domestic manufacturers. However, as of March 25, 2025, these changes remain proposals and have not been officially implemented. The administration seeks to extend TCJA provisions, including the QBI deduction and 100% bonus depreciation.[8] Deregulation aims to lower compliance costs, particularly benefiting smaller businesses and manufacturers.[11][12]

Trade and Tariffs

Tariffs have intensified significantly under Trump's administration:

Country/Material	Current Tariff Rate	Effective Date
China	20%	March 2025
Canada (Energy or energy resources)	10%	March 2025
Canada (Other Goods)*	25%	March 2025
Mexico*	25%	March 2025
Steel/Aluminum (All Countries)	25%	March 2025
Potash (Canada and Mexico)**	10%	March 2025
Note: Tariff rates listed for steel and aluminum reflect universal application as of March 2025. Additional retaliatory tariffs from the European Union and Canada have been announced, affecting a variety of U.S. exports. Tariffs on imports from specific countries may be subject to future tariff-rate quotas (TRQs) or exemptions; thus, actual tariff burdens may vary based on historical import levels and country-specific agreements. Excludes goods entered duty-free under the USMCA, effective Mar. 7, 2025. *Potash that is not entered duty-free under the USMCA. Source: Federal Register notices; Marketplace, "Tariff Timeline: What is the Status of the Trump Administration’s Tariffs?" (2025), https://www.marketplace.org/2025/03/12/tariff-timeline-what-is-the-status-of-the-trump-administrations-tariffs/; Trade Compliance Resource Hub, "Trump 2.0 Tariff Tracker" (2025), https://www.tradecomplianceresourcehub.com/2025/03/20/trump-2-0-tariff-tracker/; data retrieved from U.S. International Trade Commission (USITC) DataWeb.

Additional Tariffs (proposed for April 2, 2025)

Possible tariffs on European Union goods, autos (25%), semiconductors, pharmaceuticals, and agricultural products.[1][2][3][4]

Immigration

Immigration policies have been tightening, with a proposed shift towards merit-based visas (favoring STEM talent). While some changes have already been implemented, causing delays and increased hiring difficulties in various sectors, the full transition to a merit-based system remains under consideration.[13][14][15][16]

Healthcare and Federal Spending

Potential federal healthcare funding cuts, specifically to the Affordable Care Act, have been proposed but not yet implemented. These proposals, along with ongoing policy uncertainties, are affecting healthcare organizations' strategic planning.[17][18][19]

Industry-Specific Impacts

Professional Services

Positive – Higher profitability from reduced taxes, deregulation.
Negative – Restricted immigration impacting talent acquisition and potential decrease in regulatory consulting demand.[11][12]

Technology

Positive – Encouragement for domestic R&D investment.
Negative – Tariffs causing supply-chain disruptions, reduced access to international talent.[3][13][20]

Healthcare

Positive – Expansion opportunities in telehealth and digital solutions.
Negative – Possible cuts in federal funding, talent acquisition challenges due to immigration restrictions.[13][17][18][19]

NGOs and Political Organizations

Positive – Increased funding and influence for conservative organizations.
Negative – Reduced funding, influence, and increased regulatory challenges for liberal-leaning organizations.

Manufacturing

Positive – Lowered corporate taxes, beneficial bonus depreciation policies.
Negative – Rising costs due to import tariffs, disrupted supply chains.[2][20]

Source: NFIB
Small Business Optimism Index by Major industry

Regional and Size-Based Differences

Rust Belt (Midwest) – Positive impacts from manufacturing incentives. Manufacturing policies could significantly boost local economies.[4][6][12][20]
Coastal Tech Hubs (California, Massachusetts, New York) – Immigration restrictions likely to impact talent acquisition severely.[3][4][13]
Small Businesses – Stand to benefit from deregulation but may struggle with capital access issues.[3][4][21][22][23]
Large Businesses – Better positioned to leverage tax benefits and withstand tariffs.[6][24]

Impact on Black-Owned Businesses

Positive – Potential increased profitability from corporate tax reductions and deregulations.[6][25]
Negative:
- Major rollback of DEI initiatives, with federal contracting goals significantly reduced from 15% down to 5%.[25][26]
- Continued barriers from entrenched "good old boy networks" severely limit fair access to contracts.[27][28][29]
- Larger corporations disproportionately benefit from the rollback, with greater resources and established relationships to maintain federal contracts.[30][31]

General Business Sentiment and Market Reaction

Short-Term – Certain industries (manufacturing, energy) likely benefit from immediate stock market gains. Economic uncertainty,[3] however, is dampening overall investment enthusiasm.

Long-Term – Businesses that can quickly adapt to ongoing policy shifts will outperform peers; adaptability and agility will become critical competitive advantages.

Overall Strategic Recommendations for SMBs

Comprehensive Tax Planning

Accelerate income recognition and defer deductions to capitalize on existing beneficial provisions like the QBI deduction.[33][34]
Consider restructuring entities for tax efficiency, particularly if the QBI deduction expires.[34]

Supply Chain Management

Diversify sourcing from high-tariff regions and establish domestic and nearshore relationships.
Increase inventory strategically, buffer against disruptions, and renegotiate supplier contracts.[20]

Talent and Workforce Strategies

Diversify recruitment practices to mitigate immigration policy impacts.
Invest significantly in training existing employees and leveraging automation technologies.

Operational and Cost Efficiency

Redirect savings from tax cuts into technology and process automation.
Evaluate and adjust pricing models to absorb or pass on increased tariff-related costs.

Revenue Diversification and Innovation

Expand revenue streams by innovating new products and services to mitigate risk exposure to tariff impacts.
Focus investments in sectors that align closely with favorable policy shifts.

Advocacy and Compliance

Engage proactively in policy advocacy efforts, including exemption requests and participation in trade policy dialogues.
Implement advanced compliance monitoring systems to respond efficiently to regulatory changes.

Trade and Tariffs: Navigating the New Economic Landscape

Current Tariff Environment

The Trump administration has implemented a robust series of tariffs that significantly reshape international trade dynamics. As of March 2025, the tariff landscape includes:

China: A comprehensive 20% tariff on all imports from China was officially implemented in March 2025, per recent USTR announcements, affecting a broad spectrum of goods critical to many sectors including technology and manufacturing.
Canada: A complex tariff structure comprising:
- 50% on steel and aluminum.
- 10% on energy and potash.
- 25% on all other Canadian imports.
Mexico: A uniform 25% tariff on nearly all imports, though exceptions currently exist for auto imports compliant with the USMCA until at least April 2025.
Steel and Aluminum: Expanded Section 232 tariffs apply a 25% rate universally, significantly impacting industries reliant on these foundational materials.

Upcoming and Potential Tariff Changes

The administration has indicated the following adjustments or additions:

"Liberation Day" (April 2, 2025): Designated as the rollout date for additional tariffs, notably on agricultural products, automotive imports (25%), and specific imports from the European Union (25%). Furthermore, commodities like semiconductors, pharmaceuticals, and copper have also been flagged for potential tariffs, possibly at or exceeding 25%.
Ongoing Investigations: New Section 232 investigations examine potential tariffs on copper and timber/lumber imports, signaling future expansions of trade barriers.[25]
International Retaliation:
- Canada has already responded with retaliatory tariffs on $29.8 billion worth of U.S. exports, which may escalate international trade conflicts further.[1][2][5]
- In direct response to these tariffs, the European Union announced retaliatory tariffs on approximately $28 billion worth of U.S. goods.[1][2][32] The retaliatory tariffs will be implemented in two stages:
  - Effective April 1, 2025: The EU will lift the suspension on tariffs previously in place between 2018 and 2020, impacting products including motorcycles, bourbon whiskey, and denim jeans.
  - Effective April 13, 2025: Additional tariffs will be imposed targeting key American exports such as steel and aluminum products, textiles, home appliances, and various agricultural goods.
  - These EU countermeasures could significantly disrupt market access for American producers, notably affecting small and mid-sized businesses involved in manufacturing, agriculture, textiles, and consumer goods sectors.

Impact on Small and Mid-Sized Businesses (SMBs)

These comprehensive tariff changes significantly influence SMB operations across various sectors:

Supply Chain Disruptions: The tariffs have led to critical disruptions in global sourcing strategies, forcing SMBs to quickly reassess their supply chains, especially businesses heavily reliant on imported materials and components.
Cost Pressures: Elevated costs from tariffs are either absorbed, reducing margins or passed onto consumers, potentially impacting demand and competitiveness in global markets.
Market Uncertainty: The unpredictability surrounding potential future tariffs generates volatility, complicating long-term strategic and financial planning.

The introduction of retaliatory tariffs escalates global trade tensions, potentially leading to increased operational costs, reduced competitiveness of U.S. products abroad, and supply chain disruptions. Escalating international trade tensions creates significant market volatility, complicating long-term strategic and financial planning for SMBs.

How U.S. Businesses Are Responding

Companies are actively adapting to mitigate the effects of these tariffs through several strategic responses:

Supply Chain Adjustments

Diversification: Reducing reliance on single-source suppliers, companies are increasingly seeking alternate international and domestic sources.
Nearshoring and Reshoring: Businesses are re-examining their production and supply chains, shifting closer to home or countries with favorable trade agreements (e.g., Central America).
Inventory Management: Firms are strategically increasing or reducing inventory levels to balance cost implications of tariff timing.[6][8][20]

Product and Pricing Strategy

Product Redesign: Reducing dependency on imported components by adapting products to utilize domestically sourced or tariff-exempt materials.
Price Adjustments: Implementing necessary price increases or absorbing partial costs to remain competitive without dramatically affecting consumer demand.[6][8]

Financial and Operational Adaptations

Cost Structure Analysis: Undertaking detailed financial analyses to identify where tariff impacts are greatest, allowing for precise cost control measures and reallocation of resources.
Contract Renegotiation: Incorporating tariff contingencies and dynamic pricing structures into supply contracts to accommodate shifting costs effectively.
Advocacy and Exemption Requests: Lobbying for exemptions through legal and political channels, utilizing formal processes (e.g., Section 301 exemption requests) to mitigate tariff impacts where possible.[3][6][8][9]

Strategic Recommendations by Sector

To help your business successfully navigate this challenging tariff environment, consider the following recommendations:

Technology Companies:

Diversify Component Sourcing: Expand your supplier base beyond tariff-impacted regions to Southeast Asia or India, and explore reshoring opportunities to stabilize production costs.
Leverage Tariff Engineering: Optimize your product designs and tariff classifications, ensuring accurate Harmonized Tariff Schedule (HTS) codes to minimize tariff obligations.
Increase Supply Chain Agility: Adopt more flexible and responsive supply chain systems that can quickly adapt to regulatory changes and market volatility.

Healthcare Organizations:

Evaluate Domestic Supply Alternatives: Proactively identify and secure domestic and nearshore suppliers to mitigate international supply risks, especially for critical medical components.
Invest in Digital Health: Expand telehealth and digital solutions, which face fewer tariff challenges and align with ongoing industry growth.

Manufacturing Firms:

Pursue Vertical Integration: Increase control over your supply chain by investing in internal capabilities or local strategic partnerships, thereby reducing external tariff exposure.
Utilize Foreign Trade Zones (FTZs): Establish operations within FTZs to defer or eliminate tariffs and optimize your cost management strategy.

Professional Services Firms:

Specialize in Tariff and Compliance Advisory: Develop expertise and services around tariff management, helping clients navigate complexities and turning the challenge into a new business line.

NGOs and Political Organizations:

Policy Advocacy: Engage in active advocacy efforts to influence tariff policy decisions, particularly where they impact social, environmental, or economic development objectives.

General Strategic Actions for All SMBs:

Scenario and Contingency Planning: Develop detailed, scenario-based action plans to address potential tariff escalations or reductions.
Compliance and Monitoring Systems: Invest in robust tariff compliance technology to remain agile in response to continuous regulatory shifts.

Key Takeaways:

Tariffs under Trump's second term present substantial operational risks and strategic opportunities.
Successful adaptation demands proactive and flexible strategic planning.
Each industry sector requires tailored mitigation strategies to navigate tariff impacts effectively.

Tax Cuts and Deregulation

The Trump administration's ambitious tax policy framework is set to significantly impact small and mid-sized businesses (SMBs),[35] reshaping financial planning strategies, investment decisions, and growth opportunities. Understanding the evolving tax landscape and proactively preparing for potential changes will be critical for SMB leaders aiming to maintain profitability and competitive advantage.

Latest Tax Policy Developments

As of March 2025, the Trump administration has outlined significant tax priorities, notably extending key provisions from the 2017 Tax Cuts and Jobs Act (TCJA):

Corporate Tax Rates: Proposal to reduce the corporate income tax rate from 21% to 20%, with an enhanced 15% rate specifically for U.S.-based manufacturing firms.
Individual Income Taxes: Plans to extend or permanently establish lower individual income tax rates set by the TCJA, potentially benefiting pass-through entities significantly.[34]
Qualified Business Income (QBI) Deduction: The highly beneficial QBI deduction (Section 199A)—currently providing a 20% deduction on qualified business income—is set to expire at the end of 2025,[36] creating uncertainty for pass-through entities. Bipartisan support exists to extend or even make this deduction permanent.[37]
100% Bonus Depreciation: Proposals are in place to reinstate and permanently extend the 100% bonus depreciation, incentivizing significant business investment in capital expenditures and infrastructure modernization.[8][35]
Estate and Gift Tax Exemptions: The elevated lifetime gift and estate tax exemption established under the TCJA is also being considered for extension, which may benefit business succession planning.[34]

Potential Expiration and Changes to QBI Deduction

The potential expiration of the QBI deduction at the end of 2025 poses considerable risks to many SMBs, particularly pass-through entities (S-corporations, partnerships, sole proprietorships):

Higher Tax Burdens: Without an extension, marginal federal income tax rates for businesses could rise dramatically. For instance, a business owner earning $1 million in QBI could experience an effective tax rate increasing from 29.6% to 39.6%, adding substantial tax obligations.[33][34][38]
Legislative Proposals: Alternatives under consideration include replacing the QBI deduction with a preferential tax rate structure, taxing QBI at 80% of the taxpayer's ordinary marginal rate rather than offering a flat deduction.[7][35][39]

Impact on Black-Owned Businesses

Trump’s second term has introduced policy changes with mixed implications for Black-owned businesses.[26][27] These impacts are particularly pronounced in federal contracting, regulatory support, and community-based economic initiatives.

Positive Impacts

Increased Profitability from Tax Cuts:
The proposed corporate tax reductions—lowering the standard rate from 21% to 20%, and as low as 15% for domestic manufacturers—could significantly enhance profitability and reinvestment capabilities for Black-owned SMBs. Such tax relief offers essential financial flexibility, helping these businesses to potentially expand operations, invest in innovation, or improve operational efficiencies.

Reduced Regulatory Burdens:
Trump's deregulation initiatives could lower compliance costs, allowing Black-owned businesses more resources to allocate toward strategic investments or talent acquisition, partially offsetting other financial pressures.

Negative Impacts

Rollback of DEI Initiatives and Elimination of Anti-Discrimination Safeguards:
Under the Biden administration, the federal government established an administrative goal (not a statutory requirement) aiming to award 15% of federal contracting dollars to Small Disadvantaged Businesses (SDBs) by fiscal year 2025.[71] This goal represented a significant increase from the statutory minimum goal of 5%, which itself remained unchanged by law. President Biden’s administration undertook several actions toward this ambitious target, including issuing guidance for federal agencies, improving technical assistance programs, and reforming contract consolidation strategies.[72]

However, under the Trump administration, Executive Order 14151 ("Ending Illegal Discrimination and Restoring Merit-Based Opportunity"),[73] issued January 21, 2025, rescinded Executive Order 11246,[74] originally established in 1965. Executive Order 11246 had been a cornerstone of affirmative action, mandating equal employment opportunity (EEO) and affirmative action programs (AAPs) for federal contractors and subcontractors regarding race and gender, amended in 2014 under President Obama (Executive Order 13672) to include protections based on sexual orientation and gender identity.[75] Its rescission effectively ended most federal affirmative action requirements.[76][77][78][79]

Consequently, as part of this broader rollback, the Small Business Administration (SBA) announced the federal contracting goal for Small Disadvantaged Businesses would revert from Biden’s administrative goal of 15% back to the statutory minimum of 5%.[80] This adjustment aligns explicitly with the administration’s broader efforts to eliminate diversity, equity, and inclusion (DEI) initiatives in federal contracting. Federal agencies are now prohibited from explicitly promoting diversity or requiring diversity-focused workforce programs and must instead ensure compliance solely with general federal anti-discrimination laws. Additionally, federal agencies have suspended enforcement actions previously managed by the Labor Department’s Office of Federal Contract Compliance Programs.[81][82][83][84][85][86]

The rollback primarily benefits larger, established corporations, which typically possess greater resources, established federal relationships, and stronger capacities to compete without specific DEI-driven support. Conversely, small disadvantaged businesses, including many Black-owned enterprises, face heightened competitive barriers and diminished opportunities—including fair treatment in government procurement and employment practices—within the federal contracting landscape due to these changes.[28]

Influence of the 'Good Old Boy Network':
Persistent informal networks—often described as the "good old boy network"—further compound these disadvantages.[29] Black contractors frequently face exclusion from established business relationships, limited access to timely information about contracting opportunities, and systemic favoritism toward established, predominantly white-owned enterprises. These informal but pervasive barriers remain intact despite formal policy commitments to diversity.[28][29][31]

Community and Economic Consequences:
These policy shifts could have severe ripple effects, significantly reducing income stability and economic resilience for Black communities.[31][41] Cancellation of contracts due to DEI rollbacks has already resulted in substantial financial losses for numerous Black-owned businesses, weakening their long-term viability and economic influence.[41][42][43]

Strategic Recommendations for Black-Owned Businesses

Diversify Funding Sources:
Black-owned firms should proactively explore alternative funding mechanisms beyond federal contracts, including private-sector partnerships, venture capital, community banking relationships, and crowdfunding initiatives.
Strengthen Local and Community Partnerships:
Leveraging local chambers of commerce, minority-focused economic development organizations and strategic community alliances can create new avenues for contract access and business growth.
Enhance Operational Efficiency and Competitiveness:
Invest in technology, process optimization, and skill development to improve competitiveness and mitigate the impacts of shrinking federal opportunities.
Advocacy and Networking:
Actively engage in policy advocacy at both local and federal levels to influence future legislative measures. Building strategic networks can help counterbalance exclusion from traditional contracting circles.

This nuanced approach provides a foundation for strategic actions that can help Black-owned businesses mitigate risks and capitalize on available opportunities in the current policy environment.

Regional and Size-Based Differences

Trump’s economic policies and regulatory environment distinctly impact businesses depending on geographic location and size, creating both targeted opportunities and unique challenges.

Regional Impacts

Rust Belt and Manufacturing Regions

States such as Ohio, Michigan, Pennsylvania, and Indiana stand to gain significantly due to policies explicitly crafted to support domestic manufacturing.[44] Trump's implementation of lowered corporate taxes (as low as 15% for domestic manufacturers) and potential extension of 100% bonus depreciation incentivize reinvestment in factories, equipment, and infrastructure. The imposed tariffs further enhance local manufacturers’ competitiveness by protecting domestic producers against cheaper imports. Collectively, these policies could stimulate substantial economic growth, job creation, and regional revitalization, particularly benefiting mid-sized manufacturers poised for expansion.

Coastal Tech and Innovation Hubs

Major technology centers such as San Francisco, Boston, New York, and Seattle face pronounced challenges, particularly due to tightened immigration policies.[45][46] These regions rely heavily on skilled international talent, especially in STEM fields. With the shift toward a restrictive merit-based immigration system prioritizing highly specialized professionals, broader roles will become increasingly difficult to fill, resulting in project delays and talent shortages. These disruptions could impair innovation capabilities, leading tech-focused SMBs to reassess operational strategies and talent management processes significantly.

Midwest and Southern Emerging Biotech Clusters

Emerging biotech hubs across the Midwest and Southern states (e.g., North Carolina, Texas, Georgia, and Tennessee) benefit from new domestic investment incentives and increased funding targeted toward domestic innovation could position these regions as attractive alternatives to traditional coastal hubs.[47][48][49] SMBs in these areas should leverage these incentives by expanding their research and development initiatives and tapping into the growing local talent pool fostered by recent STEM education investments and broader population shifts.[50]

Size-Based Impacts

Small Businesses

Small businesses will generally find immediate advantages in the administration’s deregulation efforts, enjoying lower compliance burdens and reduced administrative costs. However, because they frequently lack the financial resources and agility to effectively absorb or pass on costs associated with extensive tariff structures the benefits of other initiatives could be more difficult to realize. The current trade volatility particularly impacts SMBs with narrow margins or those heavily reliant on imported components. Additionally, small businesses may encounter greater challenges accessing affordable capital, limiting their ability to leverage tax incentives such as bonus depreciation or capital investments fully.

Mid-Sized Businesses

Mid-sized businesses, positioned between agility and resource availability, potentially experience the most balanced impact. These companies typically have more significant financial and operational resources than small businesses, enabling them to better capitalize on reduced corporate tax rates, expanded depreciation incentives, and proactive tariff mitigation strategies such as reshoring, nearshoring, or supplier diversification. However, they still face considerable risks from trade volatility and immigration restrictions, demanding strategic flexibility and ongoing scenario planning to navigate effectively.

Large Corporations

Larger corporations are generally best positioned to maximize the administration’s beneficial tax environment, effectively managing tariff-related risks through sophisticated global supply chain strategies and significant bargaining power. These corporations can more easily absorb tariff-induced costs or restructure supply chains rapidly due to greater resource availability and established international relationships. However, increased scrutiny under recent executive orders curtailing diversity initiatives and DEI-focused federal contracting guidelines may require larger organizations to recalibrate their corporate social responsibility and compliance strategies.

Strategic Recommendations by Region and Size

Manufacturing Regions:
Capitalize aggressively on manufacturing-focused tax incentives and tariffs by investing in production capabilities and workforce development. Consider vertical integration and expanding domestic supply chains.
Coastal Tech Hubs:
Strengthen local talent pipelines through partnerships with educational institutions and prioritize domestic hiring strategies. Explore opportunities in less immigration-sensitive areas, such as expanding remote work arrangements to mitigate talent acquisition challenges.
Emerging Biotech Clusters:
Leverage any deregulation benefits and increased domestic investments to expand R&D activities. Strengthen local industry networks and academic partnerships to attract talent and venture capital.
Small Businesses:
Emphasize agility through diversified supply chains, targeted cost-control initiatives, and enhanced operational efficiency via automation. Build stronger relationships with local financial institutions to improve capital access.
Mid-Sized Businesses:
Implement comprehensive scenario planning, strengthen risk management functions, proactively mitigate tariff exposure through diversified sourcing, and actively engage in tax optimization strategies to maximize available deductions and credits.
Large Businesses:
Leverage extensive resources to optimize global supply chains, invest significantly in domestic operations to benefit from preferential tax policies, and reassess compliance and DEI strategies to align with new federal contracting guidelines.

By closely aligning strategies to the specific opportunities and challenges presented by regional and size-based policy impacts, businesses can better position themselves for sustainable growth and competitive advantage under Trump’s administration.

Recommendations for SMB Leaders

Proactive Tax Planning

Given the fluid legislative landscape, SMBs should actively engage in advanced tax planning and scenario modeling to adapt effectively:

Accelerate Income: Where feasible, accelerate project completions, invoicing, and income recognition in the current tax year to maximize the existing QBI deduction before its potential expiration.
Expense Deferral: Strategically defer claiming specific expenses or deductions until after the potential expiration of beneficial tax provisions, optimizing short-term tax savings.

Business Structure Optimization

Reevaluate Entity Types: Consider restructuring business entities for optimal tax efficiency. For instance, shifting from pass-through structures to C-corporations may be advantageous for businesses significantly impacted by the loss of the QBI deduction. These strategies should be discussed with your financial and legal teams.
Separate Business Activities: Businesses involved in both Specified Service Trade or Business (SSTB) and non-SSTB activities could benefit from separating operations into distinct entities, preserving deductions on qualifying income.

Investment and Financial Strategies

Enhance Retirement Contributions: Maximize contributions to retirement plans (SEP-IRAs, Solo 401(k)s, Roth IRAs) to reduce taxable income and stay within beneficial QBI thresholds.
Invest in Qualified Business Property: Capitalize on deductions such as Section 179 and bonus depreciation to maximize property deductions and investment incentives.

Operational Efficiency and Revenue Diversification

Technology Investment: Leverage new tax savings by investing in technological advancements and process automation to improve operational efficiency, thereby offsetting potential tax increases in the future.
Revenue Stream Diversification: Actively seek alternative revenue opportunities by introducing new products, and services, or exploring additional market segments to mitigate the financial impact of higher potential tax obligations.

Preparing for Legislative Uncertainty

The Committee for a Responsible Federal Budget estimates Trump's tax proposals could reduce federal revenue by $5 trillion to $11.2 trillion over the next decade, with significant implications for federal debt and economic stability. SMBs must:

Monitor Legislative Developments: Stay informed through regular consultations with tax professionals and business consultants, continuously updating strategies based on legislative signals and policy changes.
Engage Tax Advisors: Work closely with tax specialists to develop tailored strategies that optimize current opportunities and mitigate the impact of any future tax law changes.

Trump’s second term creates both significant opportunities and considerable challenges for small and mid-sized businesses; policies remain dynamic. Navigating these policy changes effectively will demand proactive strategic planning, agile management, and decisive operational adjustments. SMBs that embrace flexibility, maintain robust financial and strategic planning, and leverage expert guidance will best capitalize on these developments.

While this article provides a broad overview of potential impacts of current policies on SMBs, it is crucial to understand that each business operates within a unique context. The information and recommendations provided are general in nature and may not be directly applicable to your specific situation.

Therefore, we strongly encourage you to seek tailored advice from Lauren Ashley Consulting or other qualified professionals. Here's why personalized consultation is essential:

Specific Business Needs: Your business has unique challenges, opportunities, and financial structures. Tailored advice considers these specific factors to develop strategies that align with your goals.
Industry Nuances: While the document covers industry-specific impacts, deeper analysis, and planning are needed to address the particular nuances of your industry and market.
Regional and Local Factors: The impact of policies varies by region. A personalized consultation will assess how local economic conditions and regulations affect your business.
Tax Planning: Tax laws are complex and subject to change. A professional tax advisor can help you navigate these complexities and optimize your tax strategy based on your individual circumstances.
Supply Chain and Operations: Each business has a unique supply chain and operational setup. Tailored advice can help identify vulnerabilities and develop strategies for resilience and efficiency.
Risk Mitigation: Personalized consultation allows for a detailed assessment of potential risks and the development of mitigation strategies specific to your business.

To obtain tailored advice, we recommend scheduling a consultation with Lauren Ashley Consulting. During this session, we will:

Conduct a detailed review of your business operations and financial status.
Analyze how current policies specifically affect your business.
Discuss potential customized strategies to navigate challenges and capitalize on opportunities.
Explore ongoing support and updates as policies evolve.

Please contact us to schedule your personalized consultation and ensure your business is well-prepared to navigate the changing landscape. Our expertise ensures your business stays resilient and competitive in the evolving landscape.

Lauren Carter, founder of Lauren Ashley Consulting, drives business transformation through strategic and operational excellence. She has partnered with high-growth firms, elite athletes, and global organizations to enhance growth, performance, and profitability. LAC’s clients and the organizations we have worked with or alongside include Sodexo, USPS, NerdWallet, NBA, NFL, United Nations, World Economic Forum, IMF, HubSpot, IronMan, Chegg, and more.

Explore our services: laconsulting.co/services | Follow LAC Founder, Lauren Carter, on LinkedIn for insights on leadership and strategy.

Update Timeline

Initial Publication: March 22, 2025
Last Updated: March 25, 2025
Update: March 25, 2025
- President Trump signs executive order imposing a 25% tariff on all goods from countries importing Venezuelan oil or doing business with Venezuela, effective April 2, 2025. A new “secondary tariff” targets Venezuela directly, citing national security risks and alleged ties to organized crime.
(Future updates will be added here with dates and brief descriptions of changes.)

Sources:

[1] Marketplace – Tariff Timeline: What is the Status of the Trump Administration’s Tariffs? (2025)

[2] Trade Compliance Resource Hub – Trump 2.0 Tariff Tracker (2025)

[3] Reuters – How Companies Are Responding to Trump's Tariffs (2025)

[4] U.S. Chamber of Commerce – Tariffs, Imports, and Small Business (2025)

[5] Yahoo! Finance – Trump Tariffs Live Updates (2025)

[6] Grant Thornton – New Tariff Paradigm: How Businesses Can Respond (2025)

[7] Committee for a Responsible Federal Budget – Trump Tax Priorities Total $5–11 Trillion (2025)

[8] Thomson Reuters – Upcoming Tax Law Changes Under Trump (2025)

[9] NPR – Tariff Dodging, Exemptions, and Engineering (2025)

[10] CNBC – Qualified Business Income Deduction Could Expire (2024)

[11] Sidley Austin – President Trump's Executive Order Seeks to Reduce Federal Regulation (2025)