As we embark on a new year, we all take a moment to reflect on new beginnings and what is in store for our goals and resolutions in the months and years to come.

In Washington, D.C., we too are beginning a new chapter, though with some familiar faces. After a long, eventful and fractious election season, we are moving forward and welcoming a new administration and a new Congress. As we approached November’s elections, there were countless potential scenarios to consider: a Harris administration, Republican Senate and Democratic House; a Harris administration with a Republican Congress; or a Trump administration with a Republican Senate and Democratic House. Not many crystal ball gazers were anticipating a full sweep by either the Democrats or the Republicans.

Leading into the election, the chemical distribution industry was keenly aware of the mixed implications for our businesses and the industries that depend on the reliable, efficient and cost-effective transport of chemical products for their success, like paint and coatings, manufacturing, automotive and so many more.

So, how exactly will the outcome of the 2024 election results impact our industries? With the big turnover in Washington, and as we gain some insight into the new administration and the new Congress’ makeup, we’ve dusted off our crystal ball to examine anticipated policies the chemical distribution industry and our supply chain partners can expect over the next few years.

New Administration, New Priorities

The 2024 presidential election was quickly decided with Donald Trump sweeping all seven swing states and marking the first popular vote win for a Republican president in 20 years. For many businesses – especially small businesses – the presidential election result paves the way for a course correction on many of the Biden administration’s costly regulatory directives that have added unnecessary burdens to America’s businesses.

A new president and his Cabinet officials bring new policies and economic priorities to the foreground. Unlike 2016, President-elect Donald Trump is not coming into the Oval Office as a newcomer. He now understands what it takes to build a Cabinet and drive an agenda. The president-elect also has more supporters in Congress than he did in his first term, signaling the potential for more alignment with his goals.

We are hopeful that the new Trump administration will pursue an aggressive agenda to ease some of the more burdensome and duplicative regulatory pressures while providing both ongoing and additional tax relief, which will further foster growth and opportunity for American businesses.

Throughout the campaign, former President Trump made tariffs a central part of his economic message, with the aim of boosting domestic manufacturing. During his previous tenure, he took a “protectionist” approach and imposed tariffs on goods coming from adversaries, like China. Those tariffs have been costly for members of the chemical distribution industry and many of the industries we support. Unfortunately, U.S. businesses can expect to be faced with additional tariffs on imports with the new administration. As policymakers consider these measures, we hope they will consider the impact of additional tariffs to the economy in general and businesses that are already facing significant hurdles, particularly for those businesses that are importing products – chemical or otherwise – that aren’t sourced or produced in the U.S.

Congressional Make-Up

While the presidential election was won by margins much larger than predicted, congressional races were decided by very tight margins. In the Senate, Democrats had to defend more seats than Republicans with nine senators retiring or seeking other offices. Following the election, Republicans have regained the U.S. Senate, with a 53 to 47 margin. This shift in majority includes a newly elected Senate Majority Leader, John Thune (R-SD), replacing Sen. Mitch McConnell (R-KY) who stepped down after his 17-year tenure as Senate Republican leader. In his new role, Sen. Thune will oversee the confirmation process of the president-elect’s Cabinet picks, move legislation that is brought to the Senate floor for consideration, and set key policy priorities that are critical to the growth and success of our country and the chemical distribution industry.

In the House, the margins are even slimmer. While Republicans were projected early on to retain control of the lower chamber, some of President-elect Trump’s selection of Republican members for positions in his administration is shrinking an already slim majority. With Rep. Mike Johnson (R-LA) winning the GOP nomination as speaker, he appears on track to retain his leadership role when he faces a full House vote in the new year.

With a trifecta of control now in place in Washington, a unified Congress is likely to make significant progress in moving the president-elect’s agenda forward. One of the top priorities on this agenda includes the extension of multiple tax provisions from the 2017 Tax Cuts and Jobs Act that are set to expire at the end of the year. These provisions, including the standard deduction, individual income tax rates and the deduction for small-business income, have had a beneficial impact on American workers and businesses both small and large. More than 90% of businesses are considered a pass-through business, meaning they are organized as a sole proprietorship, S corporation, partnership, or LLC and qualify for a 20% deduction of their qualified business income. Many ACD members and our supply chain partners have relied on this deduction to help their businesses grow, hire new workers and increase wages and other benefits for their employees. ACD looks forward to working with Congress to ensure these tax provisions are made permanent before their expiration in December 2025.

We are also hopeful that a new Trump administration will closely examine the reinstated Superfund tax program and consider its repeal. The program, which has proven challenging given little guidance from the Internal Revenue Service, has already caused significant uncertainty for businesses, and has placed serious financial burdens on businesses across the supply chain.

There are also a few policies that should be restarted that don’t cost the government much but pay huge dividends for businesses. First, Congress should reauthorize the Chemical Facility Anti-Terrorism Standards program, a successful, bipartisan program that has been lapsed for more than a year and is critical for chemical security. Second, Congress should retroactively renew the Generalized System of Preferences and Miscellaneous Tariff Bill programs. These two critical free-trade programs enhance access to essential chemicals while keeping the costs for these products low.

Committee Leadership Changes

The shift in power dynamics in Congress also affects congressional committee leadership. Committees in both the Senate and House will welcome new leadership who will not only influence the policies that are considered but will also determine the initiatives that are advanced over the next two years. Some of the committees with jurisdiction over key issues of transportation, labor, energy, environment, taxes and homeland security will impact our industry more than others.

With Republicans taking control of the Senate, each committee will have a new chair at the helm. The following committee changes are the most relevant to the chemical distribution industry:

• Senate Commerce, Science and Transportation Committee: Senator Ted Cruz (R-TX) will take over for Senator Maria Cantwell (D-WA)
• Senate Environment and Public Works Committee: Senator Shelley Moore Capito (R-WV) will lead after Senator Tom Carper (D-DE)
• Senate Appropriations Committee: Senator Susan Collins (R-ME) will take over control from Senator Patty Murray (D-WA)
• Senate Finance Committee: Senator Mike Crapo (R-ID) will take over control from Senator Ron Wyden (D-OR)
• Senate Homeland Security and Government Affairs Committee: Senator Rand Paul (R-KY) will lead after Senator Gary Peters (D-MI)

In the House, Republicans will maintain their control over committees. However, there will be quite a few leadership changes due to retirements. The most relevant committee leadership in the House includes:

• House Energy and Commerce Committee: Rep. Brett Guthrie (R-KY) will take over from Rep. Cathy McMorris Rodgers (R-WA)
• House Transportation and Infrastructure Committee: Rep. Sam Graves (R-MO) secured a waiver to maintain his post as chairman
• House Appropriations Committee: Rep. Tom Cole (R-OK) will maintain his post as chairman
• House Education and Workforce Committee: Rep. Tim Walberg (R-MI) will take over from Rep. Virginia Foxx (R-NC) after she was termed out
• House Ways and Means Committee: Rep. Jason Smith (R-MO) will maintain his chairman status
• House Homeland Security Committee: Rep. Mark Green (R-TN) will maintain his chairman status

As businesses continue to face high inflation, supply chain disruptions and regulatory burdens, ACD looks forward to working with the Trump administration and congressional leaders to ensure businesses can expand and thrive, fueling a robust American economy. In order for the chemical distribution industry — and our supply chain partners like paint and coatings professionals — to continue to grow, Washington must implement policies that provide certainty for businesses and adopt common-sense regulatory reform, tax provisions and trade policies that will rebuild our economic prowess this year, and in the years to come.