Key Takeaways from the U.S. 2024 Presidential Election for Foreign Counsel and Foreign Clients
With Republican Presidential Candidate Donald J. Trump having been elected to a second term as President of the United States on November 5, 2024, and with Republicans also having secured control of the U.S. Senate and poised to retain their majority in the U.S. House of Representatives, foreign counsel and clients should expect major policy changes from the second Trump Administration and the likely Republican-controlled Congress. Although many unknowns remain relating to specific policy proposals, the below are some key points that foreign clients and their counsel should keep in mind if they have transactions and/or matters that involve U.S. clients or parties.
Corporate: Expect increased M&A and capital markets activity in the U.S. as banks and private equity groups rush to take advantage of a lighter regulatory environment from U.S. policymakers. All industries could benefit from a decrease in federal regulations but companies with a focus on technology, energy, AI, and cryptocurrency may benefit the most from the new regulatory landscape.
Antitrust and Regulatory Enforcement: Expect decreased antitrust enforcement from the DOJ, particularly involving big tech, and decreased regulatory enforcement from government agencies, such as the SEC and the FTC.
Tax Policies: Expect proposals to substantially decrease corporate and individual income tax rates for U.S. companies and U.S. persons. The exact scope of any proposed decrease will depend on the new Republican-controlled Congress but expect significant reductions in U.S. tax rates for U.S. businesses and individuals.
Tariffs: Expect substantial tariffs on imported goods, particularly goods from China, or goods that involve industries that the Trump Administration wants to encourage to be manufactured in the U.S., such as autos or semiconductor chips.
Immigration: Expect major procedural and administrative changes to U.S. immigration laws, particularly for family-based visas and employment-based visas, including capping approvals of H-1B applications.
Although significant details remain on how the second Trump Administration and the likely Republican-controlled Congress will approach policy issues that impact foreign businesses and foreign investors, particularly from European markets, if you have any questions and/or comments about how the U.S. 2024 Election could impact your clients and/or your business, please feel free to contact our team at Wuersch & Gering LLP.
This article has been prepared for general informational purposes only and does not constitute legal advice. This article may be construed as attorney advertising.