DOGE, ESG, DEI, Tariffs: Decoding the latest and what comes next | Navigating Washington 3.21.25
The policy landscape is evolving by the minute with broad implications for your organization.
To help our member companies stay ahead of the uncertainty, The Conference Board has launched Navigating Washington: Insights for Business — a daily guide to executive orders, proposed laws, changing regulations, and how the world is responding.
This edition of C-Suite Insights rounds up the most important developments and insights you may have missed—and need to know—from the past two weeks.
From Beef to Bourbon, EU Retaliatory Tariffs on the US Signals Next Stage in Trade War
Trade between the US and the European Union (EU) became a focus over the last week. On March 11 the EU announced retaliatory tariffs in response to US tariffs on steel and aluminum imports from all countries, which went into effect March 12.
Targeted retaliation: The EU’s retaliatory tariffs will cover about $28 billion of US goods, in two phases: The first phase will take effect April 1, with the EU largely targeting finished consumer and agriculture products that it imports from the US, including beef, poultry, motorcycles, bourbon, peanut butter, and jeans. The EU also proposed a second wave of tariffs against further US imports to go into effect mid-April.
Transatlantic trade in perspective: The US and 27-member EU have the world’s largest bilateral trade and investment relationship. In 2024, a total of $975.9 billion worth of goods were traded between the two markets:
US goods exported to the EU totaled $370.2 billion, up 0.7% from 2023.
EU goods imported to the US totaled $605.8 billion in 2024, up 5.1% from 2023.
This resulted in a US goods trade deficit with the EU of $235.6 billion in 2024, a 12.9% increase over 2023.
More tit-for-tat to come? In response to the EU’s retaliatory tariffs, the White House has referenced further levies on EU products, such as a 200% tariff on wine and champagne. It is expected that tariffs on EU goods will be part of the US Administration’s look into 200+ economies and roll-out of a program of “fair and reciprocal” tariffs April 2.
The TCB take: Thus far, the EU has announced plans to levy tariffs on mostly US consumer end-products. However, Phase 2 and future tariffs will likely be broader and focus on industrial and energy products—the highest-value US exports to the EU. These are led by:
petroleum oil, crude,
medicine and pharmaceuticals
engines and motors, non-electric
aircraft and associated equipment
natural gas
In short, it’s not just about jeans and wine. US and global businesses need to prepare for higher costs, and a weakening market for major US exports.
Read the analysis by Senior Economist Erin McLaughlin »
Why This Proxy Season May See Less ESG Engagement
The U.S. Securities and Exchange Commission (SEC) recently issued new guidance tightening the eligibility of large shareholders to file as “passive investors.”
What is a “passive investor”? Those who hold significant stock in a company but do not seek to change or control its operations.
Expect less ESG-related engagement: These changes will likely impact shareholder engagement this proxy season, discouraging investors from raising ESG-related issues and policies. The move aligns with the new administration’s broader push for deregulation and a shift toward corporate autonomy over investor influence.
Key developments: Institutional investors, including BlackRock and Vanguard, temporarily paused public corporate meetings to reassess and interpret the new guidance. BlackRock will now highlight its role as a “passive investor” at the start of each engagement.
The TCB take: Companies should anticipate potential changes in shareholder engagement dynamics this proxy season, with some investors taking a more cautious approach to ESG and hot-button topics. At the same time, boards should also prepare for less predictable voting outcomes, as investors may provide limited input ahead of key resolutions.
Ultimately, companies and boards should proactively reassess shareholder engagement strategies to ensure alignment with the evolving regulatory landscape.
Watch the Committee for Economic Development webcast »
DOGE Expands to Reduce Regulations
The President issued an Executive Order that expands the DOGE effort into the regulatory sphere, requiring agencies to compile lists of regulations that they believe are unconstitutional or reflect “unlawful delegations of legislative power [.]”
What does it say? The Order states that it is Administration policy “to commence the destruction of the overbearing and burdensome administrative state.” It requires all agencies to review regulations “for consistency with law and Administration policy” in conjunction with the DOGE Team Lead at the agency and the Office of Management and Budget (OMB).
Why it matters: The categories of regulations described in the Order potentially implicate virtually every Federal regulation. At a minimum, they require agencies to review their entire slate of regulations and require the concurrence of the DOGE Team Lead and OMB to continue them.
The Order also potentially affects enforcement, giving agency heads power to “determine whether ongoing enforcement of any regulations identified in their regulatory review is compliant with law and Administration policy,” effectively equating law and policy.
The Order then takes further steps by instructing that agency heads “in consultation with” the Director of OMB can “suspend” enforcement of “unlawful” regulations and even direct the termination of specific enforcement proceedings.
The TCB take: In effect, this assumes the power to define what is unlawful and shifts the presumption that Congress’ statutes are lawful and to be enforced unless held unlawful by a court. This also potentially brings decisions on whether to terminate specific enforcement proceedings directly into the White House by involving the Director of OMB; a significant expansion of power, as White House officials generally have not become involved in specific enforcement matters.
Read the report Current Efforts to Redefine Control of the Administrative State »
Employers Provide Stability and Trust in Uncertain Times
At a time of policy and economic uncertainty and political polarization, companies have an important role to play in providing a bedrock of trust and reliability for their workforces.
In a roundtable convened by The Conference Board at our annual Corporate Communications event, internal communications leaders agreed that employers can stabilize uncertain times through authentic leadership and a strong organizational culture.
Authentic, transparent leadership increases trust: CEOs and other leaders who acknowledge we are in stressful times and that the company is there for them can offer employees reassurance.
Culture and a track record of effectively handling turmoil enhances confidence: Company leaders can remind employees of past successes where teamwork and resilience, such as during the COVID-19 pandemic, allowed the company to overcome challenges.
The TCB take: Employers can take practical steps to handle uncertainty, including by:
Educating employees on the issues discussed or acted upon by the new US administration, including by bringing in politicians from major political parties.
Recognizing employees who work on affected issues and implement new policies. As during the pandemic, acknowledging frontline workers dealing with unexpected changes and extra work can enhance morale, culture, and commitment.
Looking externally for advice on how to handle uncertainty, including by joining The Conference Board to tap into experts’ insights and participate in facilitated peer exchanges.
Read the report by Denise Dahlhoff, Director, Marketing & Communications Research »
Understanding and Managing Legal Risk in Corporate DEI
In the United States, rapid legal developments relating to diversity, equity, and inclusion (DEI) practices, programs, and policies require continuous monitoring to ensure companies have accurate, up-to-date information regarding legal compliance and evolving regulatory standards.
Why it matters: As the legal landscape develops in this area, companies are identifying and evaluating the specifics of their existing programs to determine compliance with state and federal law as well as overall program effectiveness.
While “illegal DEI” remains undefined by the new administration, recent developments have provided some direction useful to the private sector.
The TCB take:
Businesses should align compliance with broader inclusive workplace culture objectives.
Regular audits and third-party reviews can strengthen organizational resilience against legal scrutiny.
Workplace programs should be developed and implemented in accordance with well-established anti-discrimination legal frameworks.
Leaders should ensure that employees and other key stakeholders understand the organization’s commitment to creating and maintaining a culture of fairness and inclusion, and provide employees with timely updates on any changes to existing workplace policies.
By maintaining robust compliance protocols, proactively adapting to legal developments, and consulting with legal professionals, businesses can effectively navigate this evolving landscape and sustain lawful inclusive workplace programs while reaffirming their commitment to equal opportunity, merit, and access.
Read the report by our Principal Researcher Allan Schweyer and Camille Olson, Partner at Seyfarth Shaw LLP »
Director
6moIt's certainly a bumpy ride and rather unpredictable as NO rules seems to apply - hopefully the new administration will self-destruct or come to it's senses sooner rather than later!
A dynamic, well-rounded leader with HRBP experience, talent acquisition and management, employee relations, workforce planning, M&A, and HRIS experience in the finance, healthcare, and hospitality business sectors.
6moA big thank you The Conference Board for its comprehensive review and fact based recommendations. In particular, your insights on the impact of tariffs on the US and EU and the criticality of authentic leadership during times of change resonated.