The first 100 days of a new administration sets the tone for policy direction and regulatory priorities. The following key takeaways from the Trump administration’s first three months highlight significant trends, shifts and strategic considerations for businesses and investors.
1. Tariffs as a Swiss Army Knife of Policy: Expect Tactical, Adaptable Use
Trump 2.0 contemplates the use of tariffs to generate revenue, decouple from China and apply leverage in global negotiations. This currently includes a baseline 10% universal tariff; reciprocal tariffs; tariffs on China, Mexico and Canada based on concerns over fentanyl trafficking and illegal immigration; and sector-specific tariffs.
However, the administration’s approach to tariffs is highly adaptive, and it has shown a willingness to make course corrections based on market reactions. In this uncertain landscape, it’s crucial for businesses to remain flexible and prepared for sudden changes.
Takeaways: Embed tariff adaptability into supply chain strategies to manage both the sudden and gradual shifts in the tariff landscape.
- Pursue tariff mitigation strategies.
- Petition for sector-specific exceptions and carve-outs where available.
- Structure supplier and logistics networks to buffer against sudden tariff impositions or changes.
2. Corporate Criminal Enforcement Is Pulled Back — but Watch for Snapback
The Department of Justice (DOJ) has explicitly aligned its enforcement priorities with broader policy goals, reflecting a fresh focus on cartels, gangs and national security. The administration has paused Foreign Corrupt Practices Act (FCPA) enforcement, which is currently under review by the attorney general, and downsized DOJ enforcement staff in many traditional areas of corporate enforcement.
However, future administrations may well take a different approach, and with a five-year statute of limitations, the enforcement pendulum may swing back — with retrospective consequences.
Takeaways: Do not dismantle compliance programs. Retool them for resilience across political cycles.
- Assess exposure to high-risk jurisdictions, financial flows and counterparty links that could intersect with U.S. enforcement priorities (e.g., cartels, corruption, illicit trade).
- Ensure your compliance infrastructure is built to withstand policy swings and reactive enforcement snapbacks.
3. False Claims Act Deployed To Support Policy Goals
With traditional corporate criminal enforcement slowed, the administration is using the False Claims Act (FCA) more aggressively to combat fraud, waste and abuse, particularly around tariff evasion. This aligns with the broader policy goal of eliminating financial misconduct.
Takeaways: Anticipate increased civil enforcement risk even if criminal enforcement appears dormant.
- Review internal controls related to import/export compliance, customs declarations, and government-facing certifications and financial disclosures.
- Strengthen whistleblower response frameworks, as FCA cases are often triggered by insider reports.
- Understand that tariff violations, financial misstatements or regulatory noncompliance may now be pursued through FCA actions, with significant financial and reputational consequences.
4. Antitrust Enforcement: Similar Scrutiny, More Flexibility
The Trump administration has started with strong words about continued active enforcement, but it has retreated from the “anti-merger” stance of the Biden administration. We expect a reversion to more mainstream antitrust principles for the vast majority of cases, but there likely will be closer scrutiny for Big Tech.
Another big change is that the Trump administration has reintroduced merger remedies, allowing structurally problematic deals to proceed with what it deems are adequate fixes. This more pragmatic approach to remedies reflects a greater willingness to engage in direct discussions on proposed mergers.
Takeaways: Antitrust scrutiny remains aggressive, but perhaps more negotiable for the vast majority of deals. Deal teams and their antitrust counsel will need to carefully set the best strategy for defending deals in this new environment based on each deal’s specific factors.
- Be sure to set antitrust strategy early on and tailor it to the specific deal.
- For deals with significant issues, consider early engagement with regulators. Thoughtful remedy proposals can make a difference.
- Assess the role of political and national interest factors, especially in deals with foreign investment, supply chain impact or strategic technologies.
5. CFIUS: A Kinder, Gentler Approach on the Way?
While there has been little change to Committee on Foreign Investment in the United States (CFIUS) practice or procedure thus far, the administration promises a more investor-friendly CFIUS process for non-Chinese investors. The administration is also considering extending CFIUS jurisdiction over “greenfield” investments.
Takeaways: Do not expect major changes to CFIUS policy, and watch for some easing of burdens on CFIUS procedure. Expect greater case-by-case political-level consideration of important transactions within CFIUS, even as the regulatory framework remains stable.
- Advocate for more targeted mitigation strategies, and look for opportunities to argue that existing mitigation should be reduced.
- Repeat, low-risk investors should consider greater use of “short-form” filing procedure.
- Anticipate economic-focused policy considerations to play a greater role in CFIUS deliberations.
6. Trade Compliance: Some New Priorities, Sharper Teeth on China
New terrorism sanctions against cartels create additional regulatory and litigation exposure for corporates and financial institutions with operations in Latin America. The administration could increase or decrease sanctions on Russia as part of ongoing negotiations related to Ukraine. DOJ and Commerce are doubling down on vigorous enforcement of export controls against companies engaged in illicit trade with China involving sensitive technologies or industries. The administration is committed to expanding other China-related controls on supply chains and U.S. “outbound” investments.
Takeaways: Expect heightened compliance expectations across trade, supply chain and financial transactions.
- Strengthen monitoring of funding chains and trade partners.
- Expect a greater use of end-user certifications by exporters and trading partners.
- Align compliance programs with emerging export control priorities.
7. SEC: Return to ‘Core Mission’ of Capital Formation and Investor Protection
The new Securities and Exchange Commission (SEC) leadership under Chair Paul Atkins signals a return to the agency’s core mission: capital formation, orderly, fair and efficient markets, and investor protection. A former SEC commissioner and long-standing securities lawyer, Chair Akins has emphasized “clear rules of the road,” a retreat from “rulemaking through enforcement” and a focus on traditional areas of oversight.
Significant structural changes have taken place within the agency: The Enforcement Division has been streamlined, several senior roles remain unfilled and overall headcount has been reduced by over 10%. These constraints are likely to drive a more targeted and resource-conscious approach to enforcement that focuses on tested theories of liability and avoids political controversy, unless there is a clear material disclosure violation at issue.
We can expect proposed rulemaking to avoid stifling innovation or discouraging investment and capital formation in the U.S., with a particular eye toward supporting mid- and small-cap IPOs and easing comment resolution through the Division of Corporation Finance. The SEC is also expected to adopt a more measured approach to corporate penalties, including more fulsome credit for cooperation, self-reporting and remediation, and is less likely to impose large penalties where there is no clear company benefit, investor harm or deterrence rationale. The SEC is unlikely to propose regulation or enforce areas that are politically controversial unless there is a clear material disclosure violation at issue.
In the cyber and digital asset space, the SEC has restricted its crypto oversight under the rebranded Cyber and Emerging Technologies Unit (CETU) with a stated focus on jurisdictionally grounded fraud, cyberrisks and emerging technologies such as AI. The CETU will complement a new “Crypto Task Force,” overseen by Commissioner Hester Peirce, with a pledge to effectuate “a comprehensive and clear regulatory framework for crypto assets.”
Takeaways: Expect more traditional, disclosure-focused enforcement.
- Prioritize material disclosure, insider trading and market manipulation risk.
- Leverage cooperation, self-reporting and remediation where appropriate to mitigate corporate penalty exposure.
- Reinforce controls around retail investor exposure, Regulation Best Interest compliance and fraud mitigation.
- Anticipate new guidance on FCPA-related books-and-records and internal controls obligations, including for foreign private issuers.
- Track the evolving scope of the CETU, particularly for AI and digital fraud.
8. Foreign Investors: Navigating Between Risk and Opportunity
European and allied investors may gain relative advantages in regulatory reviews, particularly where they distance themselves from China ties. The European Commission and the U.K.’s Competition and Markets Authority (CMA) are signaling a somewhat more pro-business stance, potentially making regulatory reviews more favorable for foreign investors as compared to the U.S.
Takeaways: Position investments strategically to navigate evolving geopolitical and sectoral sensitivities.
- Assess sector-specific sensitivities, especially in technology and infrastructure.
- Differentiate investments through clear national security risk mitigation.
- Track evolving trade restrictions and adjust transaction planning accordingly.
9. Volatility Is the New Normal — Prepare for Policy Swings and Targeted Enforcement
Geopolitics, enforcement discretion and presidential messaging will likely continue to have a major impact in shaping legal exposure. Political risk will increasingly intertwine with compliance risk.
Takeaways: Robust compliance, risk-adjusted disclosure and strategic engagement are essential tools for managing the months ahead.
- Maintain robust, forward-looking compliance frameworks.
- Embed risk-adjusted disclosure practices into corporate reporting.
- Engage strategically with senior officials and regulators to manage emerging threats.
This memorandum is provided by Skadden, Arps, Slate, Meagher & Flom LLP and its affiliates for educational and informational purposes only and is not intended and should not be construed as legal advice. This memorandum is considered advertising under applicable state laws.