President Trump's Executive Orders: Key Impacts on Tax, Business, and Finance

Since resuming office in January 2025, President Donald Trump has enacted a series of executive orders aimed at reshaping the U.S. economic landscape. This article provides an overview of the significant directives affecting taxation, business operations, and financial policies.

1. Withdrawal from the OECD Global Tax Agreement

In a notable move, President Trump issued an executive order withdrawing the United States from the Organisation for Economic Co-operation and Development's (OECD) global tax deal. This agreement sought to implement a minimum 15% corporate tax rate on large multinational corporations to curb tax avoidance. The withdrawal has raised concerns about potential tax conflicts, as the U.S. may respond to other countries increasing taxes on American multinationals.

2. Freeze on Federal Financial Assistance

The administration announced a temporary halt on most federal financial assistance spending, excluding programs like Social Security and Medicare. This pause affects a wide range of governmental disbursements, including foreign aid and energy projects. The Office of Management and Budget (OMB) has directed agencies to review assistance programs to ensure alignment with the administration's priorities, with reports due by February 10. This action has sparked legal challenges and concerns over its potential impact on various sectors.

3. Suspension of IRS Hiring and Regulatory Freeze

An executive order was issued to suspend hiring at the Internal Revenue Service (IRS) and freeze all regulatory actions. This move is anticipated to delay the implementation of new tax guidance and affect the processing of tax-related matters. The suspension aligns with the administration's broader goal of reducing federal oversight and promoting fiscal conservatism.

4. Reassessment of Energy Credit Projects

The administration has targeted energy credit projects, particularly those initiated under previous administrations. An executive order mandates a review of these projects to evaluate their alignment with current policy objectives, focusing on fiscal responsibility and energy independence. This reassessment may lead to the suspension or cancellation of certain initiatives, especially those related to clean energy and climate action.

5. Tariffs on Taiwanese Semiconductors

In a move to encourage domestic production, President Trump has threatened to impose tariffs on semiconductors manufactured in Taiwan. This action could significantly impact companies like Nvidia, which rely on Taiwanese firms for specialized chip production. The proposed tariffs aim to incentivize the return of chip manufacturing to the United States, despite potential increases in costs for tech companies.

Conclusion

President Trump's recent executive orders reflect a strategic shift in U.S. tax, business, and financial policies. Businesses and financial institutions should closely monitor these developments to understand their implications and adjust strategies accordingly. Staying informed and proactive will be crucial in navigating the evolving economic environment shaped by these directives.