From tariffs to DOGE: How do businesses view the impact of MAGA policies?

Here is the English translation of the text, with the specified terms retained as is: As former US President Donald Trump returns to the political arena, his trade and economic policies have once again become a focus of market attention. From tariffs to immigration policies, corporate executives are frequently asked in earnings conference calls how these changes will impact their businesses. According to an analysis by CNBC, the frequency of references to Trump-related keywords in S&P 500 companies' earnings calls has reached a multi-year high. Even if Trump's name may not directly appear in these conference call transcripts, the impact of his policies is already evident. Terms such as tariffs, immigration, the newly established Department of Government Efficiency (DOGE), and the "Gulf of America" are frequently mentioned in corporate discussions, reflecting market uncertainty about the future.

Tariffs Become a Key Concern for Businesses

In 2025, tariffs have become one of the most actively discussed topics in corporate earnings calls. The Trump administration had implemented, and then temporarily suspended, a 25% import tariff on goods from Mexico and Canada, and imposed a 10% tariff on Chinese products, as well as tariffs on aluminum and steel. Furthermore, Trump recently announced the possibility of implementing new retaliatory tariffs on other trading partners on a country-by-country basis. This uncertainty has left companies in a quandary. As of early 2025, more than 190 S&P 500 companies have mentioned tariff issues in their earnings calls, the highest level in the past five years. According to FactSet data, this topic saw a significant surge in discussion in the fourth quarter of 2024, closely related to the market reaction following Trump's electoral victory. For example, Marathon Petroleum CEO Maryann Mannen stated that the company is closely studying the potential impact of tariffs. Many companies have chosen not to incorporate potential tariff impacts into their financial forecasts, as it remains unclear which policies will ultimately be implemented. Cisco CFO R. Scott Herren also described the tariff policy as "dynamically changing" and said the company has prepared various response plans to mitigate the impact. For some companies, the impact of tariffs can be double-edged. James Nickolas, the CFO of building materials supplier Martin Marietta Materials, pointed out that tariffs could both increase the company's profitability and have negative effects, depending on the specific policy implementation.

Businesses Concerned about Immigration Policy's Impact on the Labor Market

Immigration policy has also been a hot topic in this year's earnings calls, reaching the highest mention rate since 2017. Trump had promised large-scale deportation of undocumented immigrants during his campaign, a policy that could have a significant impact on the US labor market and potentially drive up inflation. Snap-On CEO Nicholas Pinchuk noted that while market demand remains strong, the uncertainty surrounding immigration policy is putting pressure on companies. For example, telecom giants AT&T, Verizon, and T-Mobile have been asked about whether a reduction in immigration could affect the market demand for specific mobile plans. Additionally, the real estate and logistics industries have expressed concerns. Prologis CEO Hamid Moghadam mentioned that in Southern California, changes in immigration policy could reduce the labor supply, leading to higher labor costs for local businesses, particularly during the infrastructure rebuilding efforts following the wildfires in Los Angeles. On the other hand, some companies have a more optimistic view on the impact of immigration policy. Tyson Foods CEO Donnie King stated that the company's employees all have legal status, so the deportation of undocumented immigrants would not affect its operations.

DOGE: The New Department Led by Musk Causing Concern for Businesses

In addition to tariffs and immigration, the Trump administration's newly established Department of Government Efficiency (DOGE), led by Tesla CEO Elon Musk, has also been frequently mentioned in earnings calls. The department's goal is to reduce government spending, which has caused concern among companies with business dealings with the federal government. Iron Mountain's government retirement record storage facility has become one of the "inefficient" cases cited by Musk. However, Iron Mountain CEO Bill Meaney believes that government streamlining could have a positive impact on some of the company's business. Similarly, defense technology company Palantir has a positive outlook on the establishment of DOGE. Chief Technology Officer Shyam Sankar stated that he believes DOGE will push the government towards "transparency and performance-driven" approaches, which aligns with Palantir's corporate culture. He also added that some government software providers are concerned about their contracts being reduced, even describing these contracts as the "taboo of the deep state".

The Dispute over the Name "Gulf of America": Diverse Corporate Reactions

The Trump administration has made changes to geographical names, renaming the long-standing "Gulf of Mexico" as the "Gulf of America". This move has elicited different reactions in the corporate sector.

The energy giant Chevron has actively used the term "Gulf of America" in its earnings calls and press releases, while Exxon Mobil, which held a meeting on the same day, chose to continue using the traditional "Gulf of Mexico" name, indicating the different positions of companies on this policy.

Corporations Still Observing the Long-term Impact of MAGA Policies

As the first quarter of 2025 financial reporting season draws to a close, Trump's policies have become a core topic in corporate earnings calls. Tariffs, immigration, the government efficiency department DOGE, and the "Gulf of America" issue reflect the market's uncertainty about the new administration. Currently, many companies are still observing the ultimate impact of MAGA policies and attempting to formulate response strategies. Regardless of how these policies ultimately develop, the corporate discussions show that they have already had a profound impact on the market atmosphere.