As President Donald Trump prepares to retake office on Jan. 20, 2025, the roofing industry must consider the changes he will likely put into action. No doubt, they will be far-reaching and have various impacts on how we do business.

Executive Orders and Regulatory Actions

It seems probable that Trump will begin his second (nonconsecutive) term by issuing executive orders to reverse those from President Joe Biden. We can also expect a temporary freeze on new regulations from federal agencies. These could suspend any regulations being written by the U.S. Department of Labor (DOL), National Labor Relations Board (NLRB), Environmental Protection Agency (EPA), and other agencies whose authority impacts the construction industry. In addition, he will likely reinstate agency requirements for stringent cost-benefit analysis of regulations and their impact on business. 

Trump might also bring back an executive order from his first term requiring agencies to cut two regulations for every new one. In addition, he could fire the NLRB’s general counsel and replace its chair with a Republican board member. We can bet that the Trump administration will not defend legal challenges to the Biden DOL’s overtime and independent contractor rules.   

Legislative and Judicial Support

President Trump will have tremendous political support since there will be a Republican majority in the Senate and probably in the House as well. In addition, as many recent cases have proven, the U.S. Supreme Court backs many of his policies. 

This unified control of the White House and Congress will allow Trump to use the Congressional Review Act to repeal regulations issued in the last year of the Biden Administration. These could include OSHA’s Heat Injury and Illness Prevention rule if finalized before January 20, the EPA’s designation of PFAS (also known as forever chemicals) as hazardous under the Superfund law, and many others. 

Unified control will also allow Trump and Congress to move fast on a budget reconciliation package that will extend provisions of the 2017 Tax Cuts and Jobs Act (TCJA) that expire at the end of 2025. Reconciliation enables whoever controls Congress to avoid Senate filibusters and the 60-vote hurdle. Republicans used it to enact the TCJA, and it will be crucial to pass a massive tax package that reportedly might also include regulatory reforms, spending cuts, border security provisions, and other initiatives.

Energy Policy

Trump will likely divert energy policy away from Department of Energy (DOE) subsidies for renewable energy and the EPA’s electric vehicle mandates. He will have the ability to act unilaterally on some issues. For others, he can expect that the Senate will confirm his cabinet nominations for the DOE, EPA, and other agencies, and those leaders will enable him to fulfill his agenda. Trump and the Republican Congress will try to reverse the Inflation Reduction Act (IRA) renewable subsidies. The IRA’s energy-efficiency tax incentives could remain in place; however, the union-backed prevailing wage and apprenticeship requirements for maximum credits and deductions might be removed.

Immigration Reform

Trump has made it clear that he will move quickly to secure the border. However, his mass deportation promise may prove challenging from a logistical standpoint. The administration will probably target immigrants with criminal records first. In addition, we can expect Immigration and Customs Enforcement (ICE) to conduct more worksite raids, and there could be a significant increase in I-9 audits to locate illegal workers.

International Tariffs

Throughout his campaign, Trump pledged to impose a 60% tariff on Chinese goods, as well as general tariffs of 10 to 20% on other imports. In addition, at a Nov. 4 North Carolina rally, he stated that he would impose a 25% tariff rate on Mexico if the country does not put in place stricter border regulations. Biden kept nearly all of Trump’s tariffs in place and added a round of tariffs on $18 billion in Chinese goods in May, so Trump’s proposed tariff increases for Chinese goods would appear to build on these. As such, the U.S. Trade Representative (USTR) might be able to use USTR’s initial determinations and four-year review to implement them. 

However, it is unclear what existing authority Trump could use to impose general tariffs of 10 to 20% on all imports. Those tariffs could possibly be added to the reconciliation package to help offset plans to end taxes on tips and social security payments. Finally, regarding Mexico, it should be noted that President Trump previously threatened severe tariff rates on Mexico if it didn’t agree to a “remain-in-Mexico” policy for asylum seekers. The country agreed to that policy, and the tariffs were not enforced.

Final Thoughts

Many of Trump’s plans could benefit the construction industry. Fewer regulations and tax breaks could offer relief. However, his immigration crackdown proposals will make the construction labor market even more challenging than it already is. We will continue to monitor and update the industry as new developments occur.

The information contained in this article is for general educational information only. This information does not constitute, nor intend to offer, legal advice. Neither should it be relied upon as legal advice for your specific factual pattern or situation.

Trent Cotney is a partner and Construction Practice group leader at Adams and Reese LLP and general counsel for the NRCA. For questions and more information, contact Trent at trent.cotney@arlaw.com.