How will the new administration impact my company?

National Politics:

The nation let out a collective sigh of relief on November 6, 2024, knowing that the Presidential election was over, and the sigh comes from earnest appreciation that nearly everyone has for not having to see another political campaign ad. Former President Trump will return to the White House, having won the electoral college and this time the popular vote, and be sworn into office on Monday, January 20, 2025.

Here’s a few items which he campaigned on and what you will want to watch for once in office.

• Tariffs

  • Tariffs started under the first Trump Administration, continued throughout the Biden Administration, and are certainly in play for the next administration. Currently, various Chinese goods are impacted by a tariff which can range from 7.5% to 25% across many product categories.
  • At the time of this writing, additional countries have been targeted with potential tariffs, Mexico, Canada, BRIC Nations, and the stated rates have varied. The U.S. Treasury will oversee these tariffs, and Trump has nominated Scott Bessent as the Secretary of the U.S. Department. Cabinet appointments at the Federal level cannot serve until they are confirmed by the U.S. Senate.

• Taxes

  • The 2017 Tax Cuts & Jobs Act has certain provisions which are set to expire on December 31, 2025. While the corporate tax rate at 21% is currently permanent, various small and medium size business deductions and individual tax provisions are set to expire. Taxes will certainly take up a lot of the oxygen in Washington in 2025. Trump has proposed reducing the corporate tax rate to 15%.

• Immigration

  • A central theme to Trump’s campaign with various proposals floated, the tenant of removing illegal immigrants has been consistent. How many immigrants will be deported and through what means do they achieve their stated goals, will certainly take shape in the first 100 days of the new administration. Stephen Miller will be the White House Deputy Chief of Staff for Policy and Tom Homan, as the Border Czar.     

Minnesota Politics:

The current Governor of Minnesota will continue in that role for the next 2 years having returned after running unsuccessfully as the VP on the Harris ticket and Minnesotans will be sending Sen. Amy Klobuchar back for her 4^th term as a US Senator.

The Minnesota Senate, which has 67 seats, had one seat up for election in 2024 when MN Senator Kelly Morrison announced she would be running for Rep. Dean Phillips vacated seat for the US House. This opened up a competitive district for control of the MN Senate Chamber, as the Democrats had only a 1 seat majority, 34 to 33. Sen. Ann Johnson Stewart, the DFL candidate and previous office holder, did go on to win the special election and Sen. Morrison went on to win Phillip’s seat and represented the only change in the US House representation from Minnesota.   

The MN House, for the first time since 1979, is looking to be tied, as the DFL lost control of the chamber after losing 3 seats. Legal challenges still remain at the time of this writing for the tight races and ultimate control of the chamber hangs in the balance, but for now, the two leaders Rep. Melissa Hortman & Rep. Lisa Demuth are carving out a path forward. Only committees had been announced and they still have to decide who will be the Speaker.  Most likely committees will be evenly split and Co-Chairs announced, rotating the gavel between each committee hearing.