Lee C. Weingart
Cleveland Office

If you are an international company with significant business interests in the United States, the new Trump Administration and Republican Congress are likely to directly and meaningfully impact your business and operations in the United States.

Trade Agreements, Tariffs, and Immigration

  • Trade Agreements: The Trump Administration pulled out of the Trans-Pacific Partnership (TPP) and is likely to renegotiate the North American Free Trade Agreement (NAFTA).  There is little chance the Transatlantic Trade and Investment Partnership (TTIP) will move forward.
  • Tariffs: The Trump Administration wants Congress to pass new 20% tariffs, at least on goods imported from Mexico, to build and pay for the wall, plus potentially higher tariffs in other markets or regions
  • Immigration: The Trump Administration is expected to make immigration to the U.S. harder, possibly restricting specialized programs like H-1B visas for highly-educated technical workers.

Tax and Finance

  • Corporate Tax Reduction and Tax Credit Elimination: President Trump and Congress are considering reducing the top U.S. corporate tax rate from 35% to 20%.  Congress may reduce or eliminate popular tax credits (like R&D and Renewable Energy credits) to help “pay for” the reduction in overall corporate tax rates.
  • Territorial Taxation with Border Adjustability: In tandem, Congress is considering moving the U.S. to a territorial tax system (like Europe), where revenue from U.S.-produced and exported goods would not be taxed but products imported into the U.S. would receive unfavorable tax treatment.
  • Corporate Regulation: Trump and Congress are eager to reform financial regulations to promote economic growth and create jobs, opening potential new opportunities for U.S. investment by foreign entities.

Government Spending and Regulations

  • Government Spending: President Trump and Congress expect to dramatically cut U.S. spending, on energy R&D, business subsidies, environmental protection, and other areas important to business.
  • Business Regulations: President Trump and Congress are expected to roll back many regulations on labor, occupational health and safety, and environment permitting, while expediting pro-business measures.
  • Health Care Requirements: President Trump and Congress are likely to repeal the Affordable Care Act’s health care requirements. It is unclear what would replace it. 

LNE Group is uniquely situated to be your advisor on U.S. government relations