Newly inaugurated United States President Donald Trump has used the words “restoration” and “revolution” in regard to the executive orders he is signing in the beginning stages of his presidency. He has indicated that he will sign more than 100 executive orders exercising his power in the coming days, including 26 that were signed on Day 1.
- Contrary to popular belief, executive orders rarely change policy immediately. They cannot change the law as established by the courts and statues. Instead, they are the beginning steps to create processes such as the solicitation of comments, reviews and, eventually, a final ruling.
- Litigation is also common in the process.
Trump’s plans to shift policies away from his predecessor, Joe Biden, could spell a great deal of change, either soon or further into his administration. Based on what we know about his most immediate ambitions, there are a number of legal or regulatory changes that could be of note to promo companies.
“With up to 100 executive actions pending, it’s vital for the industry to navigate the upcoming changes with strategic foresight,” says Alok Bhat, PPAI’s market economist and research and public affairs lead.
Alok Bhat
Market Economist & Research & Public Affairs Lead, PPAI
Executive Orders Relevant To Promo
Below are a couple executive orders that Trump signed on Day 1.
Delaying the TikTok Ban
Trump signed an executive order seeking to not only pause a law banning TikTok, but also provide a liability shield to the social media app’s business partners. The order states the law will be paused for 75 days, giving the Trump administration time “to pursue a resolution that protects national security while saving a platform used by 170 million Americans.”
However, the legality of such an action is currently unclear. Read PPAI Media’s most recent coverage on the TikTok rollercoaster.
According to Bhat, TikTok’s ban threatens to disrupt up to $1.25 billion in promotional products sales, with small businesses bearing the brunt.
A Rollback of Energy and Environmental Restrictions
The most immediate executive orders in this category, such as ordering the federal government to roll back regulations that slow down domestic energy production or eliminating environmental justice programs, will likely not have any direct impact on promo companies. However, they could signal a less restrictive administration when it comes to certain compliance issues. They could also suggest a potential end to programs that offer tax cuts for environmentally responsible actions.
What About Tariffs?
Despite pledging to implement tariffs as soon as he took office again, Trump didn’t take official action on Day 1. Instead, the president said he was thinking about imposing 25% duties on imports from Canada and Mexico on February 1, Reuters reported.
In a presidential memo, Trump directed the Commerce and Treasury departments and the U.S. Trade Representative to probe the economic and national security risks of large trade deficits “and recommend appropriate measures, such as a global supplemental tariff, or other policies, to remedy such deficits.”
When asked if he would impose a universal tariff on all imports into the United States, as he had alluded to during the campaign trail, Trump said: “We may. But we’re not ready for that yet.”
PPAI Media has closely covered the possible tariffs that promo may face in the Trump administration. PPAI has also invited its members to send letters to Congress regarding the tariffs.
Rachel Zoch
Public Affairs & Research Editor, PPAI
“We and our partners in D.C. are keeping a close watch on these developments, especially when it comes to tariffs, which have repeatedly topped the list of potential concerns when we survey our members,” says Rachel Zoch, PPAI’s public affairs & research editor. “We’ll be addressing those and other issues when we advocate for the industry during our Legislative Education and Action Day visit to the Capitol in April.”
For questions or suggestions on regulatory or government affairs issues, please contact Rachel Zoch at RachelZ@ppai.org.
