On January 20, 2025, Donald Trump became the 47th president of our country. For years, and through many presidencies, our team at Nesbit has been helping our clients navigate their personal lives, their businesses, and all related insurance needs. We’ve seen firsthand just how new administrations can shake things up for businesses, but no matter the shakeup, preparation is the key to success.
Nathan Riedel, Senior Vice President of Federal Government Affairs for the Independent Insurance Agents & Brokers of America (IIABA or Big “I”), keeps an eye on the goings-on in the nation’s capital, especially on issues affecting the insurance industry. In a recent On the Hill article, Nathan detailed six key priorities for President Trump’s first 100 days in office. Tax cuts, immigration, health care reform, energy independence, lower government spending, and tariffs and trade policy all made the list. While some of these have a direct impact on the insurance industry, all of them will drive change for small business owners.
Ready to make the next four years the best yet for your business? Let’s dive into each priority and how it could change the landscape for small businesses.
1. Tax Cuts And Economic Growth
On the campaign trail, Trump touted himself as someone who is focused on tax cuts for all Americans. He detailed that tax cuts will help small businesses grow, allowing them to spend money on business investments that would otherwise go to taxes. With plans to keep the corporate tax rate at 21%, if not lower, President Trump will help small businesses reduce their tax liability.
As part of the economic growth component of this priority, the Administration believes that cutting back government regulations and red tape for business owners will help streamline tedious processes, reduce expenses, and offer businesses more autonomy.
As Trump’s 2017 tax policies are set to run out this year, we can look to those for guidance on how small businesses might fare in the coming years.
2. Immigration Overhaul
As mass deportations have already begun, we are seeing the sweeping changes of immigration policy in real time. For small businesses in hospitality, agriculture, and similar industries, losing low-wage workers due to deportation is a very real threat. Depending on how the Administration goes about this priority, businesses could face much higher labor expenses and struggle with labor shortages overall.
Additionally, an immigration overhaul will likely result in a new process to verify and ensure that hired workers are in the country legally, creating more red tape for businesses to navigate. Higher wages as a baseline mean higher workers’ comp claims, too, and in industries where the risk of injury is high, that must be considered.
3. Health Care Reform
Donald Trump was unsuccessful in repealing the Affordable Care Act (ACA) in his first term but vows to take another crack at it this time. His goal is to reduce the costs Americans have to pay for health insurance and create more competitive marketplaces. However, when asked what will replace the ACA, he never seems to be able to give a concrete answer.
For small business owners that provide health insurance to their employees, this will be a major change. Processes will be different, pricing structures will be impacted, and the type of care available could get a bit more complex. It’s probably a good idea to set aside some extra funds for health insurance costs since it’s so in flux right now.
4. Energy Independence
A few years ago, Donald Trump began working toward American energy independence. The United States started drilling more on its own soil, reducing energy imports and lowering the cost of gas. Now, as gas prices sit higher than they were during his first term, the plan is to continue on the energy independence journey. He will reduce environmental regulations, authorize drilling in currently protected areas, and maybe even incentivize businesses to use American-sourced energy.
In theory, this move should bring energy prices down for small businesses. The cars you fill with gas, the offices you heat in the winter, and everything in between should see a price reduction. We still have to wait and see how other countries respond to this change, but, hopefully, the outcome will be positive overall.
5. Trim Government Spending
In creating the Department of Government Efficiency (DOGE), President Trump has committed his administration to reducing government spending. It’s unclear where these cuts will happen, but many are predicting a reduction in Social Security availability, fewer public resources, and fewer government workers in place to support federal agencies.
Cutting the number of staff within the IRS might seem like a win for small businesses, but often, these types of cuts lead to chaos, inefficiencies, and a long, frustrating battle to chart a new path. Keep your eyes on this priority. There are so many ways it could go, so the best thing you can do is stay informed.
6. Tariffs And Trade Policy
Last but not least—this is a big one. Many small businesses keep all their sourcing and selling within the United States, but many do not. Trump claims the US will work toward an “America First” policy by placing tariffs on goods from other countries like Canada, Mexico, China, and even Russia.
From an economic perspective, tariffs hardly work to lower prices domestically, though that’s what the promise is. Generally, countries will enact their own tariffs in return, pushing prices for foreign goods through the roof. If this goes poorly, everything could get more expensive. Plan accordingly and keep monetary reserves at the ready.
Focus On Your Business Goals
Whether you’re excited about these changes or struggling to see how they’ll take shape, now is the time to dive into your business. Focus on the quality of your offerings, the culture of your organization, and the happiness of your employees and customers. Things will never stop changing, but, as small business owners do, we will all continue to thrive.
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