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As the 119th Congress convenes on January 3, 2025, and former President Donald Trump assumes office later that month, a new chapter in U.S. governance will begin. Tax cuts, tariffs and regulatory changes will be at the forefront of the new Republican administration’s agenda. The same will be true for America’s corporate leaders.
Congress’ early actions could have a profound impact on the business community. Many corporations would welcome a continued reduction in the corporate tax rate, and regulatory changes could produce pro-business outcomes. However, an increase in tariffs poses significant challenges for many businesses.
For corporate communications professionals, these developments signal an era of heightened public scrutiny and complex challenges. Navigating this landscape will require agility, strategic foresight, and proactive engagement to ensure businesses can adapt effectively to new policies while maintaining their reputations and valuation.
Taxes: A renewed focus on tax policy
Tax proposals are expected to dominate Congress’ agenda for much of 2025 with potential changes to the corporate tax rate, small business tax credits, and other fiscal policies likely to take center stage.
This focus will draw the attention of both policy and financial reporters who are likely to explore how these changes impact business and seek out corporate leaders for commentary and insights. Some business leaders could be asked to testify before Congress on the impact of certain tax proposals. Communications professionals must be prepared for increased press interest.
Communications Implications:
- Message Discipline: Develop clear, concise messaging on how tax changes impact your business and stakeholders.
- Proactive Media Engagement: Prepare and position your leaders for opportunities to engage with press.
- Scenario Planning: Anticipate various tax scenarios and prepare responses to mitigate reputational risks.
Tariffs: A balancing act for communicators
Some industries, including the automobile, metallurgy and agricultural industries, have dealt with tariffs for decades. However, broad-based tariffs like those proposed by President-elect Donald Trump are a new challenge for many American businesses and could be especially challenging for many international businesses.
Tariffs threaten to raise the costs of businesses in America. Companies will pay more to import products due to U.S. tariffs. Reciprocal tariffs placed on U.S. businesses by other countries would raise costs associated with exporting goods. Tariffs are likely to cause additional supply chain challenges to many businesses that only recently recovered from (and in some cases are still recovering from) COVID-era supply chain disruptions.
The corporate narrative around tariffs should carefully balance supporting what’s good for business and demonstrating empathy for consumers who may face higher costs.
Communications Implications:
- Stakeholder Alignment: Collaborate with industry groups to amplify your voice on trade concerns.
- Media Monitoring: Track developments in tariff policies and their coverage to stay ahead of the narrative.
- Transparency: Be honest about challenges while demonstrating a commitment to finding solutions.
Regulations: Navigating a shifting landscape
Federal regulators govern broad swaths of the American business landscape: product safety, labor rules, advertising restrictions, mergers and acquisitions and more. The incoming Trump administration has pledged to roll back some federal regulations, while allies of the president-elect are interested in extensive cuts to the federal governments regulatory power.
While reducing or revising some regulations can have pro-business impacts, communications professionals should keep a keen eye out for public pushback against large-scale regulatory cuts or changes. Smart engagement on regulatory issues can help establish strong relationships with regulators, avoid or reverse damaging regulations and maintain public trust in business.
Communications Implications:
- Relationship Building: Foster constructive dialogues with regulators to shape favorable outcomes.
- Risk Management: Prepare contingency plans for public pushback or policy reversals.
- Thought Leadership: Leverage regulatory changes to showcase industry leadership and innovation.
Challenges and Opportunities
As 2025 unfolds, corporate communications professionals should be prepared for new press and public interest on business actions and reactions to public policy decisions regarding taxes, tariffs and regulations. For some communicators, the coming months will present a strong opportunity to position CEOs, CFOs and COOs as authoritative voices on these issues. For many, these policy changes will have real impacts on business performance and the bottom line. By staying ahead of policy developments, being transparent, and demonstrating a commitment to stakeholders, corporate communications teams can help their organizations thrive in this evolving environment.
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