Business & Immigration Landscape

Extrepreneurs are likely to engage in strategic tax planning to mitigate business and market risks arising from potential changes in tax policies under the Trump administration. These changes could significantly impact the provisions of the 2017 Tax Cuts and Jobs Act (TCJA). Key proposals include reducing the base corporate tax rate to 15% for domestic manufacturers, and implementing increased baseline tariffs on foreign imports, with a 10% additional tariff on imports from China.

Lowering the corporate tax rate could boost profitability and encourage investment in the US based production, particularly benefitting domestic industries like manufacturing. However, it could adversely impact sectors like technology and automotive, which heavily rely on international supply chains. Further, the imposition of an additional 10% tariff might particularly affect industries like electronics and textiles, which have substantial imports from China.

The Trump administration has reaffirmed its commitment to maintaining US leadership in AI, aiming to sustain and enhance America's dominance in this field to promote economic competitiveness and national security. This strategic focus is underscored by recent executive actions, including the revocation of earlier AI policies that were restrictive to innovation. As a result, tech companies can expect a regulatory environment with fewer barriers, potentially promoting increased innovation and development in AI.

With fewer rules, domestic tech companies might see increased investment in AI R&D, potentially leading to breakthroughs in sectors like AI-powered healthcare, finance, and education. However, foreign tech companies might face challenges in navigating the US market, if they are subject to stricter standards or regulations in their home countries. The emphasis on AI innovation would create opportunities for eXtrepreneurs in international collaboration.

The Trump administration is expected to implement policies that could have a favorable impact on the healthcare industry, focusing on reducing healthcare costs and expanding access to healthcare services. This includes efforts to establish the President's "Make America Healthy Again" Commission, which aligns with the administration's broader goal of improving the health and well-being of Americans. By championing initiatives aimed at enhancing healthcare access, particularly in rural and underserved communities, the healthcare industry in the US may experience significant growth.

The emphasis on expanding healthcare access to rural and underserved areas could lead to increased demand for healthcare services, benefiting companies that provide pharmaceuticals and healthcare services. Further, eXtrepreneurs can seize opportunities in the US healthcare market, especially if they can offer cost-effective solutions or innovative technologies that align with the administration's goals.

President Trump's recent executive order aims to reduce federal regulations, intending that existing regulations impose excessive costs and complexities that hinder economic growth. The "10 for 1" rule requires agencies to repeal existing ten regulations for every new one proposed, aiming for a net reduction in regulatory costs. This aggressive deregulation effort may create a more favorable environment for entrepreneurs by lowering compliance costs and simplifying the business landscape.

A streamlined regulatory environment could simplify the process of operating a business in the US, encouraging eXtrepreneurs and potentially boosting economic activity. Further, by reducing the number of regulations, businesses, especially small and medium-sized enterprises, may experience lower compliance costs, allowing them to allocate resources more efficiently towards growth and innovation.

Under the Trump administration, there is an expectation of heightened scrutiny regarding H-1B visa applications, which are critical for many businesses reliant on foreign talent. The previous administration's policies led to increased denial rates and stricter compliance requirements for employers. This trend may continue, complicating the hiring process for eXtrepreneurs looking to bring in skilled workers from abroad.

Foreign businesses looking to expand into the US market may find it harder to bring in key personnel due to the increased scrutiny of H-1B visas, whereas, domestic businesses, particularly those in tech and finance, may face difficulties in hiring skilled foreign workers due to stricter regulations and increased scrutiny. Since the overall environment remains uncertain, careful planning and compliance strategies are necessary for businesses reliant on international talent.

Trump has announced a new ‘gold card’ immigration program, offering US citizenship to foreign investors for a fee of USD 5 million. This initiative is set to replace the existing EB-5 visa program, which requires a minimum investment of USD 1 million in the US businesses and has faced challenges due to fraud risks and difficulties in tracing the origins of applicants’ funds. However, the substantial USD 5 million price tag for the gold card will likely increase the challenges faced by those stuck in long green card backlogs, as it will be unaffordable for many middle-tier investors. Despite being a faster and simpler route to obtaining US residency, the high cost may limit its accessibility to only the wealthiest applicants.

Although the proposed ‘gold card’ program offers a faster and simpler path to US residency compared to the EB-5 visa, its high investment requirement of USD 5 million will likely limit accessibility to only HNIs, making it challenging for many small-scale investors. Furthermore, Trump’s announcement has raised concerns that the program may be perceived as putting American citizenship on sale, prioritizing wealth over merit, and favoring individuals at the expense of talented professionals. This shift could potentially undermine the value of skill & merit based immigration, creating an environment where financial resources overshadow professional capabilities.