How Trump’s Policies Are Reshaping Corporate America: A Look at the Business Impact

Tariffs Take Center Stage

The return of Donald Trump to the White House has sent shockwaves through Corporate America, with one issue dominating the conversation: tariffs. Executives from some of the largest U.S. companies, including Marathon Petroleum and Generac, have been grilled by analysts during earnings calls about how Trump’s trade policies could impact their bottom lines. Trump’s proposals, which include a 10% levy on Chinese imports and 25% taxes on goods from Mexico and Canada, have left businesses scrambling to prepare for potential disruptions.

Mettler-Toledo, an Ohio-based manufacturer of industrial scales and lab equipment, kicked off its earnings call by outlining the expected impact of Trump’s evolving trade policy. CFO Shawn Vadala noted that "uncertainty remains across many of our core markets and the global economy," with tariffs being a key concern. Other companies, like Martin Marietta Materials, are bracing for a double-edged sword: while tariffs could boost domestic demand for certain materials, they could also hike costs for imported goods.

The word "tariff" is being mentioned more frequently on earnings calls than at any point since 2020, the last full year of Trump’s first term. Companies are taking varying approaches to mitigate the impact. Generac, for instance, is prepared to raise prices and cut costs if tariffs bite. Meanwhile, María Contreras-Sweet, a former head of the Small Business Administration, warns that the policies could drive up consumer prices and exacerbate inflation.

Immigration: A Flashpoint for Labor Markets

Immigration has emerged as another hot-button issue for Corporate America. Trump’s promise of mass deportations and stricter immigration controls has sparked concerns about labor shortages and rising employment costs. The topic has come up on more earnings calls than at any time since 2017, with companies across sectors weighing in on the potential impact.

For some firms, like Tyson Foods, the issue is less pressing. CEO Donnie King noted that his company hasn’t seen any disruption to its workforce, as all employees are legally authorized to work in the U.S. Others, however, are more concerned. In Southern California, real estate developer Prologis warns that deportations could shrink the labor pool and drive up wages in the region, particularly as it rebuilds from recent wildfires.

Tech companies are also feeling the heat. AT&T, Verizon, and T-Mobile have all been asked whether a slowdown in immigration could hurt demand for their services. While these firms haven’t seen any immediate impact, the broader uncertainty is taking a toll.Nicholas Pinchuk, CEO of toolmaker Snap-On, summed it up: "Although the election is in the rear mirror and the new team may be more focused on business expansion, there’s a rapid fire of new initiatives. It’s hard not to be uncertain about what’s up."

DOGE and the Gulf of America: New Frontiers in Policy

Trump’s return to office has also brought some unexpected twists, with new acronyms and phrases cropping up on earnings calls. DOGE, the Department of Government Efficiency led by Elon Musk, has been mentioned on over 15 calls so far this year. The department’s mission to slash government spending has Wall Street on high alert, with investors wondering if public contracts could be cut.

Iron Mountain, a company that stores government records in an underground mine, found itself in Musk’s crosshairs after he criticized the facility as inefficient. But CEO Bill Meaney sees a silver lining, arguing that the push for government efficiency could create new opportunities for the company. Similarly, Palantir Technologies, a defensive tech firm, is optimistic about working with DOGE, with CTO Shyam Sankar describing the initiative as a welcome shift toward "meritocracy and transparency."

Another Trump initiative has sparked debate: his executive order renaming the Gulf of Mexico as the "Gulf of America." While Chevron has embraced the new moniker, Exxon Mobil continues to refer to it by its traditional name. The move has left analysts scratching their heads, wondering if it signals a broader shift in how the administration views trade and diplomacy.

The Broader Impact on Business

As the first earnings season of 2025 nears its end, one thing is clear: Trump’s policies are casting a long shadow over Corporate America. Companies are grappling with a wave of uncertainty, from the potential impact of tariffs on supply chains to the risks of labor shortages tied to immigration crackdowns.

Executives are doing their best to game out scenarios, but the lack of clarity is making it difficult to plan. Cisco’s CFO, R. Scott Herren, described the tariff situation as "dynamic," with the company preparing for multiple possible outcomes. Others, like Snap-On’s Pinchuk, are cautioning that the sheer volume of new initiatives from the Trump administration is creating a challenging environment for businesses.

Despite the challenges, some companies see opportunities. For Palantir, the push for government efficiency under DOGE aligns with its core strengths. And while the renaming of the Gulf of Mexico may seem symbolic, it reflects a broader shift in how the administration is approaching international relations—a shift that could have ripple effects across industries.

A New Era of Uncertainty

The early days of Trump’s second term have left Corporate America on edge. From tariffs to immigration, the administration’s policies are creating a perfect storm of uncertainty. While some companies are seizing opportunities, others are bracing for potential disruptions.

One thing is certain: the business community is closely watching every move from the White House. As Trump’s policies continue to evolve, the impact on Corporate America will likely be profound. Whether it’s through higher costs, labor shortages, or shifts in government contracting, the changes are already being felt.

For now, companies are doing what they do best: adapting. Whether through pricing adjustments, cost-cutting, or strategic pivots, businesses are finding ways to navigate the choppy waters of the Trump era. The next few months will be crucial in determining how these policies play out—and how Corporate America responds.