The political landscape under President Donald Trump’s leadership, particularly during his first term, saw significant shifts in U.S. economic policy. From tax cuts to trade tariffs, his administration’s approach to the economy had notable effects on both businesses and job seekers. As Trump enters his second term, the political and economic climate is undergoing further changes—ones that could substantially affect job opportunities, particularly within specialized fields like finance.

This article explores how Trump’s first-term policies impacted job seekers in the financial industry, how his second-term policies could change the landscape further, and what factors—such as trade wars, geopolitical tensions, and changes in federal employment—may play a role.

Part I: Trump’s First Administration and Its Impact on Job Seekers in the Finance Industry

Tax Reforms and Deregulation

One of the hallmark policies of Trump’s first term was the Tax Cuts and Jobs Act of 2017, which reduced the corporate tax rate from 35% to 21%. This policy was aimed at stimulating investment and economic growth, benefiting large corporations and industries—including finance. In the financial sector, particularly within investment banks, asset management firms, and private equity, the tax cuts allowed for greater profit margins. For job seekers, this meant more aggressive hiring strategies from major financial institutions, especially in terms of high-level positions such as investment analysts, traders, and risk managers.

However, while corporate profits surged, the gains did not always trickle down evenly. For entry-level job seekers, the impact was mixed. Many younger professionals entering finance were competing for fewer roles in a highly competitive market. According to a 2019 study by the National Bureau of Economic Research (NBER), the tax cuts led to a 3.2% increase in corporate investment, but the increase did not necessarily translate into a proportional rise in hiring across the board, especially for less-experienced workers.

Deregulation and its Effects on Job Growth

In line with his campaign promises, Trump’s administration pursued an aggressive deregulatory agenda, seeking to roll back regulations on financial institutions. The Dodd-Frank Act, a comprehensive regulatory overhaul passed after the 2008 financial crisis, was a primary target. Although the full repeal of Dodd-Frank was not achieved, key provisions were weakened. For example, the Financial Choice Act of 2017 aimed to provide regulatory relief to small and medium-sized banks, and in 2018, the Economic Growth, Regulatory Relief, and Consumer Protection Act raised the threshold for banks that would be subject to stricter regulations, from $50 billion in assets to $250 billion.

These deregulatory actions made it easier for banks to operate but also contributed to an atmosphere of uncertainty. As financial firms began to streamline operations and reduce compliance costs, certain job sectors, particularly in legal and regulatory compliance roles, faced a decline in opportunities. In 2018, the number of compliance-related job openings in finance dropped by 4.5%, signaling a contraction in that segment of the market. For job seekers, especially those new to the industry, this could be seen as a challenge, as roles in regulatory compliance were often considered a pathway into more senior positions within financial institutions.

Part II: Trump’s Second Administration—What’s Next for Job Seekers in Finance?

With Trump’s return to office in 2025, significant new challenges and opportunities are emerging for job seekers in the finance industry. As the president begins his second term, his policies are likely to further shape the economic environment, especially as they pertain to trade, federal employment, and industry-specific dynamics.

The 25% Tariff on Canada and Mexico

One of the major proposals that could impact the financial sector is Trump’s suggestion to impose a 25% tariff on goods imported from Canada and Mexico. This move, part of his “America First” trade agenda, would directly affect industries that rely on cross-border trade—such as manufacturing, agriculture, and even technology—potentially leading to market volatility.

The financial sector’s response to such a tariff could be a mix of uncertainty and opportunity. Financial institutions, particularly those involved in international trade finance, might face increased demand for financial products that help mitigate risks associated with trade tariffs, such as trade credit insurance and hedging strategies. For job seekers, this could create a rise in demand for professionals with expertise in international finance, trade policy, and risk management.

However, the tariffs could also cause economic friction, leading to slower growth in certain sectors of the economy. This slowdown may result in fewer job opportunities in financial planning, analysis, and consulting for industries that are directly impacted. A tightening of markets could also mean fewer investments in riskier ventures, particularly startups and mid-sized enterprises, limiting growth opportunities for financial services professionals in those spaces.

The Election of a Female President in Mexico

The election of a female president in Mexico—who could introduce policies focused on economic reform and trade relations with the U.S.—could further influence the financial landscape. If the new president adopts a more cooperative stance with the U.S., financial institutions may see more opportunities in cross-border investments and financing arrangements. This is especially relevant to U.S.-based financial institutions with significant exposure to the Mexican market.

For job seekers, especially those in investment banking or international finance, this could open up job opportunities related to Mexico-based corporate finance and emerging markets. Analysts who specialize in Latin American economies may find themselves in high demand.

The Resignation of the Prime Minister of Canada

The resignation of Canada’s prime minister, though still hypothetical, could introduce political instability in one of the U.S.’s closest economic allies. Instability in Canada could negatively impact U.S.-Canada trade relations, potentially leading to market fluctuations that could affect the financial markets. Similarly, a shift in leadership could alter Canada’s approach to key issues like taxation, trade, and investment.

For financial job seekers, particularly those focusing on trade finance, portfolio management, and cross-border corporate advisory services, the potential for volatility could create both risks and opportunities. Job seekers may need to develop a deeper understanding of political risk and market psychology to successfully navigate this shifting landscape.

The War in Ukraine and the Israeli Conflict

The ongoing geopolitical tensions, particularly the war in Ukraine and the Israeli conflict, have far-reaching consequences for global financial markets. The war in Ukraine, and the sanctions placed on Russia, created volatility in global commodities markets, especially energy markets, which in turn impacted financial firms with exposure to those sectors. The financial industry was forced to adapt, with greater demand for risk management strategies, international trade finance, and commodities trading professionals.

For job seekers in finance, the war’s impact on energy prices, commodities, and international relations has created new opportunities. In particular, professionals with expertise in managing global risks, such as geopolitical risk analysts and foreign exchange specialists, may find themselves in high demand. The continued instability in the region could also drive financial innovation, leading to new job roles that specifically address the needs arising from these crises.

Part III: Changes in Federal Employment Policies and Their Impact on Job Seekers in Finance

The Return to Office Mandate for Federal Employees

Another significant change under Trump’s second administration is his directive for federal employees to return to the office. This policy could have mixed effects on the job market, particularly within the financial sector.

For workers within the finance industry, many of whom were able to work remotely during the COVID-19 pandemic, this mandate could signal a return to a more traditional office-based culture. While remote work opportunities in finance remain popular, especially in roles like financial analysis, compliance, and back-office operations, there is growing pressure for employees to return to in-person roles. For job seekers, particularly those looking for positions at large financial institutions that rely on centralized teams for client-facing activities (e.g., investment bankers, traders, or wealth managers), this may represent a challenge, particularly for those who prefer or need remote work options.

Additionally, younger job seekers, such as recent college graduates, may face difficulties in adjusting to this shift. Having grown accustomed to remote internships and virtual job searches during the pandemic, they might need to reassess their expectations when it comes to work location and flexibility.

The Suspension of DEI Workers

Trump’s decision to place Diversity, Equity, and Inclusion (DEI) workers on paid leave could significantly disrupt workplace dynamics in the finance industry. Financial institutions had been making strides in promoting diversity in hiring and organizational culture, and for job seekers—especially those from underrepresented backgrounds—DEI initiatives had opened up new avenues for advancement.

The suspension of DEI programs may affect job opportunities for diverse candidates and impact corporate recruitment strategies. For recent graduates or those early in their careers, this could result in fewer opportunities or less emphasis on diversity initiatives within financial firms. For experienced workers, especially those in leadership or human resources roles, it could complicate efforts to promote inclusivity and equality within firms.

As Donald Trump begins his second term, job seekers in the financial industry face a landscape that is both ripe with opportunities and fraught with uncertainties. Policies such as trade tariffs, changes in federal employment structures, and geopolitical instability are shaping the financial sector, creating both challenges and avenues for growth. For those entering the workforce—especially recent graduates—understanding these trends and aligning their skills with the changing demands of the financial industry will be key to securing success.