April 3, 2025
President Trump’s Recent Executive Orders: Impact on Business Risk and Opportunity
President Donald Trump has issued three new Executive Orders (EOs) with significant implications for businesses across the United States.
These orders focus on dismantling Diversity, Equity, and Inclusion (DEI) policies within the federal government and reducing environmental litigation. While these changes may offer benefits for businesses, they also present potential downsides.
DEI Policies Targeted
The first EO, titled “Ending Radical and Wasteful Government DEI Programs and Preferencing,” aims to dismantle DEI policies across federal institutions. The Director of the Office of Management and Budget (OMB) is tasked with terminating DEIA programs, revising employment practices, and eliminating DEIA offices and positions.
“Critical and influential institutions of American society have adopted and actively use dangerous, demeaning, and immoral race and sex-based preferences under the guise of so-called ‘diversity, equity, and inclusion’ (DEI), or ‘diversity, equity, inclusion, and accessibility’ (DEIA),” President Trump stated.
The second EO, titled “Ending Illegal Discrimination and Restoring Merit-Based Opportunity,” targets DEI programs and mandates within the federal government. This order also revokes previous executive orders, including Executive Order 11246, which established equal opportunity employment at federal contractors.
Environmental Litigation Measures
The third EO focuses on reducing environmental litigation and includes measures to expedite environmental reviews and permitting processes. The order signals an intent to repeal subsidies for electric vehicles and state vehicle emissions standards waivers. According to Trump, “We are committed to ensuring that our environmental policies are efficient and effective, promoting economic growth while protecting our natural resources.”
Business Implications
The EOs offer several potential benefits for businesses:
- Reduced Regulatory Burden: By reducing DEI mandates and environmental litigation, businesses may face fewer regulatory hurdles, leading to streamlined operations and increased profitability.
- Focus on Merit-Based Hiring: Emphasis on merit-based hiring can lead to a more competitive workforce, improving productivity and innovation.
- Cost Savings: Lower compliance costs associated with DEI programs and environmental regulations can result in direct cost savings for businesses.
However, the EOs also present potential downsides:
- Workplace Diversity: The rollback of DEI initiatives may lead to less diverse workplaces, stifling creativity and limiting perspectives within a company, according to Virginia Kase Solomon, president and CEO of Common Cause. “The people who oppose us, the ones who attack DEI, … they want to diminish and exterminate and incapacitate progress towards a multiracial democracy to maintain white supremacy and concentration of wealth.”
- Legal Challenges: The executive orders may face legal challenges, creating uncertainty and potential disruptions for businesses navigating the regulatory landscape.
- Environmental Impact: Reducing environmental litigation and regulations could lead to increased pollution and environmental degradation, potentially resulting in higher healthcare costs and reduced quality of life.
Overall, President Trump’s recent executive orders are set to reshape DEI and environmental litigation policies, offering both opportunities and challenges for businesses. The impact of these changes will continue to unfold in the coming months, and businesses must remain vigilant and adaptable to navigate this evolving landscape.