Donald Trump’s return to the White House after winning the Nov. 5 presidential election could bring big changes for American businesses. Key factors include who he appoints to his team, any tariffs he introduces, and the possible involvement of Tesla CEO Elon Musk. Here are some main areas to watch:
WHAT ROLE WILL ELON MUSK PLAY?
Trump has suggested that he might ask Elon Musk to lead a government efficiency commission to cut spending. Musk believes he could save around $2 trillion from the federal budget. If Musk is involved, it might lead to fewer regulations in areas like self-driving cars (a Tesla focus) and rocket launches, where he’s pushed back against federal rules.
Musk and Trump don’t agree on everything, though. For example, Trump opposes California’s plan for all-electric vehicles by 2035, while Musk runs Tesla, the leading electric car company. How Musk could manage potential conflicts of interest with his businesses in EVs, space, and AI is uncertain.
Trump has also called himself a “crypto president,” possibly starting with replacing the SEC chair, Gary Gensler, who has opposed crypto firms. Musk and other Trump supporters, like tech investor Marc Andreessen, back cryptocurrencies, so a new SEC approach could bring changes to the industry.
Musk is a major supporter of clean energy, but Trump has promised to cancel parts of the Inflation Reduction Act, Biden’s climate-focused law. Some Republicans support the law due to economic gains in their states, and Musk has tapped into this by building a Tesla factory in Texas.
TARIFFS
Trump has suggested a 10% tax on all U.S. imports and 60% on Chinese-made goods. This could raise consumer prices across the economy, costing households and impacting jobs. According to the Tax Foundation, these tariffs could increase taxes by $524 billion a year, reduce GDP by 0.8%, and cut nearly 700,000 jobs, particularly in retail. Trump has also mentioned a potential 25% tariff on Mexican imports.