As the gears of political power turn in Washington D.C., businesses both within the Beltway and beyond are on alert for the ripple effects of incoming policies from President-elect Donald Trump's second term. With the Republicans reclaiming Congress, the business landscape is poised for shifts across various domains, from taxation to international talent pools.

According to a report from BizJournals, advisors are anticipating that the permanence of the Tax Cuts and Jobs Act looming over this year might be solidified, averting the scheduled sunset—thus affecting business decisions on the financial front. Scrutiny is advised on the Section 199A deductions and the state and local tax (SALT) cap, with expectations angled more towards an increment rather than a full repeal, despite Trump's pledge.

On the trade front, the specter of increased tariffs hangs as Trump has nodded towards heftier duties on imports from countries like China, Mexico, and Canada. Jay Jung, president of Embarc Advisors, emphatically told BizJournals that, "higher tariffs are almost certain," nudging businesses to consider diversifying supply chains and potentially sourcing domestic alternatives. Still, there is an air of caution concerning the prospect of stockpiling inventory due to potential drawbacks such as being saddled with obsolete stock.

The machinations of the Trump administration's immigration policies could tighten opportunities for growth in industries that have traditionally relied on international talent. The WTOP noted a decline in net international migration during Trump's first tenure, which Terry Clower of George Mason University attributed to "discouraging international migration." With such precedents, DC business leaders are bracing for a potential outflow of international workers and a subsequent dent in the regional talent pool.