10/11/2024
America’s Trump Card Braces for Impact
By Anonymous Writer at Cardiff University
This week’s key terms/concepts:
• Unitary Executive Theory: A theory of US Constitutional law in which the President should maintain a greater or full control over the executive branch of government.
• Retaliatory tariff: A tax that a government charges on imports in retaliation against a state that is taxing its own exports.
• Compliance risk: The threat that an organisation faces due to a violation(s) of rules, regulations, and laws.
Donald Trump is set to return to the White House for his second term in office after winning the 2024 US presidential election on Tuesday, receiving the 270 electoral votes necessary and surpassing the 300-vote mark in what marks a strong comeback from his 2020 election defeat. Following up from his first four years, Trump’s administration looks to further the ‘America-first’ approach by prioritising domestic industries and re-evaluating US commitment to international alliances.
What is the importance of this?
Trump’s emphasis on domestic production will have large effects on the energy and manufacturing industries in particular, with the expected roll-back of environmental regulations and climate-focused initiatives in exchange for fossil fuel expansion and oil fracking. The global consequences of Trump’s policies – not the least of which will include the proposed tariffs of 60% on Chinese imports and 20% on other imports – will cause large uncertainty in navigating retaliatory tariffs and new trade agreement negotiations. The administration is also expected to revisit employee protections for workers in trade unions and gig economy roles, which could lead to an increase in employment-related litigation such as worker misclassification.
How might Trump’s policies affect the legal sector commercially?
A roll-back on regulations will require companies to manage compliance risks, and legal teams may need to advise clients on balancing environmental regulatory shifts with their business objectives. Trump’s possible shift towards the ‘unitary executive theory’, which would provide him greater control over regulatory agencies, may spark changes to compliance requirements for companies where law firms could be called upon to provide guidance. For clients affected by evolving standards for worker protections, firms could help advise the restructuring of contracts relating to gig economy roles and employees in unions.
The potential tariff implications of the Trump administration could also create a need for guidance from law firms. Clients managing cross-border investments and global supply chains may need to navigate a new tariff framework, and law firms could help by advising on restructuring strategies to mitigate these impacts.
Trump will officially be sworn in as President on Inauguration Day, on January 20th.
Lex Weekly 