Since President-elect Donald Trump’s victory in the 2024 election, Nicole Bivens Collinson, a trade lobbyist at Sandler, Travis & Rosenberg, has been inundated with calls from U.S. businesses concerned about Trump’s proposed tariff policies.
These companies are anxious about the potential impact of Trump’s hardline tariff plans, which include a blanket 20% tax on all imports and a 60% tariff on Chinese goods. Collinson’s phone has been ringing non-stop as businesses seek ways to protect themselves from these changes, hoping to find loopholes or exemptions.
During the campaign, Trump made tariffs a cornerstone of his economic agenda, advocating for protectionist policies that would raise the cost of goods by imposing tariffs across the board. Economists, analysts, and industry leaders have raised concerns that these tariffs could exacerbate inflationary pressures and increase production costs, just as the economy was recovering from the pandemic-induced economic disruptions.
Retailers, in particular, are worried about the potential fallout, and many have been working on contingency plans to prepare for the worst-case scenario.
Donald Trump
With the prospect of escalating tariffs, companies are turning to lobbyists and trade experts for advice on how to navigate the potential risks. Ron Sorini, a lobbyist at Sorini, Samet & Associates, reports receiving multiple calls daily from businesses seeking guidance on how to mitigate the impact of increased tariffs, especially in relation to China.
Companies are especially concerned about how to relocate supply chains and avoid paying higher import duties. Many firms are hoping to replicate the success they had during Trump’s first administration when securing tariff exemptions became a valuable asset for businesses reliant on Chinese imports.
A 2021 study highlighted how lobbying firms with political connections were more successful in securing tariff exemptions, illustrating the role of political influence in corporate America’s efforts to avoid tariffs.
As Trump’s second term approaches, the race is on for businesses to secure the right lobbyists who can help them gain favorable treatment, such as exemptions or loopholes. Experts predict that the real beneficiaries of these trade policies will be the lobbyists and lawyers who will facilitate these corporate maneuvers.
The uncertainty surrounding the specifics of Trump’s new tariff policies has created a challenging environment for businesses, which are preparing for a range of potential outcomes. Companies are stockpiling goods, planning price hikes, and looking to move production out of China to protect their bottom lines.
However, shifting supply chains is particularly difficult for small businesses, which lack the resources of larger companies. Lobbyists like Sorini are advocating for support to help these smaller companies, as they are most vulnerable to the changes that may result from Trump’s tariff policies.
