Excerpts from an HR Policy Global Article by Alan Wild
Global business leaders must navigate both domestic and international challenges as they manage operations and value chains across borders.
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A U.S. Presidency focused solely on American interests could pose significant hurdles for global businesses.
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CHROs should proactively monitor these five key areas: geopolitics, tariffs, immigration, labor, and international cooperation.
Geopolitics: President-elect Trump is expected to take an active role in international conflicts, including the Middle East and the war in Ukraine. Additionally, he has pledged to prioritize punitive tariffs as part of his strategy with China.
Tariffs: Trump’s promise to impose high tariffs on foreign goods aims to bring jobs back to the U.S. and attract new investments. However, this protectionist approach could lead to inflation and lower productivity, similar to challenges Brazil faced with its own tariffs.
Immigration: Closing the Mexican border could result in labor shortages in border states and beyond, impacting industries reliant on immigrant labor. This also strains Mexico’s role as a transit point for migrants and could affect U.S. tech companies dependent on Indian labor, drawing diplomatic tensions with India.
Labor: Trump’s foreign labor policies will likely differ from domestic policies, with potential inconsistencies. Like with the USMCA, expect trade deals to include labor reforms that could increase costs for businesses in partner countries.
International cooperation: Trump has been critical of international organizations like the UN, World Bank, ILO, OECD, WTO, and NATO, viewing them as burdens on the U.S. budget. He has pushed for reduced funding for NATO and shown skepticism toward the ILO, signaling a shift away from multilateral cooperation.
Why it matters: Around the world, citizens are demanding change, reflecting a growing distrust in traditional governance. Trump’s victory will have far-reaching global implications, requiring global CHROs to adapt strategies to maintain international competitiveness in an increasingly complex HR landscape.
Go deeper: For more on how these developments will impact CHROs—such as potential anti-American sentiment, labor shortages, unionization, and the shifting U.S. role on the world stage—read HR Policy Global’s full story.
