4 Key Takeaways for Global Companies From Trump’s First Week

As the new Trump administration begins to redefine economic policies and reinterpret geopolitical norms, companies must adapt to a changing environment. 

Top 4 takeaways from HR Policy Global:

1) The "G-Zero world," where no single country leads, creates a volatile backdrop for global businesses. 

• Trump’s increased influence during his second term will impact traditional alliances and new economic frameworks and partnerships may emerge, requiring strategic adjustments for global companies. 

• In addition, regional conflicts and tensions may quickly change. Businesses need to stay flexible, develop backup plans for their key markets, and diversify their supply chains. 

2) Trade relations may be reshaped by President Trump's focus on economic liberty through lower taxes and reduced regulation.

• Tariffs may be used strategically, potentially affecting costs and supply chains. Trump is contemplating a 25% tariff on Mexico and Canada to counter migrants and drugs. A similar strategy will likely target China and the EU. 

3) On workforce issues, Trump plans to halt or reverse most of the Biden administration’s rulemaking and policies.  

• Trump is unlikely to collaborate with other governments on workforce issues, leading to varying and sometimes contradictory legislative and regulatory requirements across multiple jurisdictions. 

• Pay transparency and equity laws worldwide could still compel companies to maintain these efforts despite the Trump administration’s actions to undo DEI initiatives.  

• Companies must assess and adapt their international mobility and broader workforce strategies to align with the new policy environment. 

4) Employee relations on a global scale is impacted by social media which shrinks the world like never before. Amidst the volatile economic and geopolitical landscape, employees actively respond to social events, often creating challenges in employee and labor relations across regions.  

• Global HR must proactively cultivate a positive employee relations environment, regularly analyze risks, and enhance front-line managers' skills in handling difficult situations.  

• HR Policy Global's report The Evolving Role of Global Employee Relations and Labor Relations Leaders outlines the new skills required for a global leader. 

The bottom line: Under the Trump administration, the geopolitical and economic landscape is undergoing significant changes, posing challenges for multinational companies. These shifts are expected to have a profound impact on global HR, particularly in managing talent costs and mobility strategies, navigating an increasingly volatile regulatory and legislative environment, and advancing global initiatives that affect employee relations.