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When it comes to M&A activity, Saunders said the Trump administration has typically been more interested in corporate mergers and acquisitions than previous administrations. ‘This doesn important to note that Trump is not a complete supporter of the free market, and certain political leanings, including a slightly more negative view of large tech companies, may still be reflected in regulatory policy.’
As Trump second term opens, his administration is likely to continue to pursue local protectionist policies, including high tariffs on China, the European Union and other countries. This could increase the cost of imported goods, particularly consumer goods such as footwear and apparel. To avoid tariffs and reduce risk, companies may accelerate the diversification of their supply chains and look for alternative suppliers or production sites. Some firms may consider bringing some of their production back to the United States to reduce their reliance on imports.
And at the consumer level, tariffs and other trade barriers may lead to higher prices for goods, affecting consumers’ purchasing power. Consumers may turn to cheaper alternatives or reduce spending on non-essential goods. On the other side, adjustments in personal income tax and consumption tax could also affect consumers’ disposable income. On the corporate side, the Trump administration may ease regulations on businesses and reduce compliance costs, but it could also spark controversies about workers’ rights and environmental protection, among other things.
Macro considerations, a Trump administration will have a wide-ranging impact on the retail and footwear industry, particularly in terms of trade policy, supply chain management and consumer costs. This requires that industry organisations and enterprises need to pay close attention to its policy trends and flexibly adjust their strategies to cope with possible challenges. At the same time, by working with the government, the industry hopes to promote more business-friendly policies that protect international trade as well as the tangible interests of consumers.
