What Trump Redux Means for NJ

At Issue

By Christopher Emigholz, NJBIA Chief Government Affairs Officer On Feb 28, 2025

We are a few months into President Donald Trump’s return to the White House, and it is worth weighing in on how his priorities might impact New Jersey job creators. There is a lot to like about the GOOD the next four years may bring, but there is also concern about the potential for BAD anti-business policies. Plus, there is worry that government dysfunction could be UGLY.

The GOOD:

Trump ran on promises to cut taxes and has a history of doing so, so there is reason for optimism that some business taxes may decrease. Making permanent some of the pro-business tax cuts in 2017’s Tax Cuts and Jobs Act, exempting tips, overtime and Social Security benefits from income taxes, restoring some of the state and local income tax (SALT) deductions, and cutting corporate taxes for manufacturers, are among the Trump administration priorities and would be good news for the Garden State’s beleaguered taxpayers.

Like taxes, a second Trump term is also expected to get government out of the way of job creators. Trump plans to reduce regulations that drive up costs and restrict development and domestic energy production. He also promised a Department of Government Efficiency (DOGE) to streamline the federal government, making it more responsive to the needs of taxpayers, not bureaucrats.

The BAD:

The benefits of fewer taxes and regulations could be offset by Trump’s proposed new tariffs and immigration restrictions. Free trade is good for businesses, especially in New Jersey, and new tariffs on imports would disrupt vital parts of the economy that depend on trade. Plus, it could lead to further inflation, which hurts all businesses and consumers.

Immigration is also vital to our economy, and Trump’s threatened mass deportation of undocumented immigrants could be devastating. NJBIA constantly hears from our members that they struggle to find skilled workers, or any workers at all, so new immigration restrictions may exacerbate this workforce shortage. Whether it be temporary seasonal workers at the shore or scientists on visas doing research for New Jersey innovators, businesses rely on immigrants and have reason to worry about immigration restrictions.

The UGLY:

Businesses need predictability and stability, and a chaotic federal government with threats of government shutdowns and dysfunction hurts the nation’s business climate. New Jersey businesses need government to work, and we hope that the federal government under President Trump can function well enough to achieve the good and avoid the bad.

To access more business news, visit NJB News Now.

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