Editor's note

Donald Trump’s 2024 election victory has the accounting sector bracing for regulatory changes that could reshape U.S. and international markets. His “America First” approach points to potential deregulation and tax cuts, which would shift industry practices. For local companies, slashing red tape may simplify reporting requirements, but for global firms, it may complicate international financial reporting standards. Accounting experts will be crucial as they guide clients navigating the evolving U.S.-centric rules within a global market framework. 

Trump’s renewed focus on tariffs and protectionist trade policies could significantly impact international trade with regions like Europe, Asia, the UK, Africa, and Latin America.

Europe and the UK: Trump’s potential imposition of broad tariffs, including a 20% duty on all imports and a 60% tariff on Chinese goods, could severely harm export-reliant economies like Germany and the UK. In Europe, tariffs on automotive and industrial goods may provoke retaliatory measures, escalating a trade conflict and increasing costs for American consumers. British exports to the U.S., which constitute a significant portion of the UK’s international trade, could face a sharp decline due to higher import costs and reduced competitiveness. 

Asia: China, a primary target of Trump’s policies, would experience renewed pressure through heightened tariffs. These measures could deepen the existing trade war and force Chinese goods to seek alternative markets, potentially flooding Europe or Asia with cheaper products. Countries like Japan and South Korea, integral to U.S. technology and automotive supply chains, may also face increased scrutiny and costs, disrupting regional trade dynamics.

Africa and Latin America: African nations, which largely trade raw materials and agricultural goods, might see a shift in U.S. demand as tariffs disrupt global supply chains. Similarly, in Latin America, economies heavily reliant on U.S. trade, such as Mexico and Brazil, could suffer from decreased exports and supply chain instability. Conversely, these regions could benefit if the U.S. seeks alternatives to Asian suppliers, though this would require significant investment in infrastructure and industry.

Broader Implications: Globally, Trump’s tariffs could heighten trade costs, exacerbate inflation, and slow economic growth. While they aim to support U.S. manufacturing, they risk alienating key trading partners, leading to economic retaliation, and decreased international cooperation.

In this issue, do read our cover story where Jason Piper, head of tax and business law at ACCA, discusses ethical issues that impact tax advisors and the features of a ‘good’ tax system. Elsewhere we hear from Heads of practice at Praxity member firms on how Pillar 1 & 2 implementation differs across the G20, and Adam Seidle, Head of Sales at Praxity member firm Marosa, tells us about a case study demonstrating how increased integration of digital and AI tax technology tools can reduce the compliance burden. In my interview with Ja Del Río’s CEO, Bernardo Del Río, I find out his thoughts on organisational culture and the importance of customer experience, and how these are providing the framework for the firm’s winning expansion strategies in LATAM. We also hear from Amanda Tickel on the key findings from Deloitte’s 2024 Global Tax Policy Survey; Intuit QuickBooks’ Rob Burlison highlights key findings from the QuickBooks Accounting for the SMB Economy Report 2024; Brad Brown unveils KPMG’s new cloud-based platform Digital Gateway that provides an innovative solution for proactive strategic tax management planning; PwC’s Richard Postings reports on the banking sector’s important contribution to the UK’s tax base; and RCK Partners, a financial consultancy firm specialising in R&D tax relief, and the London Business School discuss their collaborative review of the UK's R&D Tax Relief scheme relative to Other OECD countries.

Zoya Malik
Editor-in-Chief, Financial Services Practice, GlobalData & Editor, International Accounting Bulletin
zoya.malik@globaldata.com