President Donald Trump has issued a series of executive orders with significant tax implications. The moves underscore the administration’s commitment to influencing tax policies, regulatory frameworks and trade practices as part of the president’s broader economic agenda.
Below, we summarize recent executive actions that could have tax implications.
- “Reciprocal Trade and Tariffs.” On February 13, 2025, President Trump issued a memorandum instructing the creation of a “Fair and Reciprocal Plan” to address trade imbalances by imposing tariffs matching those levied on U.S. exports. This strategy seeks to counter foreign tariffs and nontariff barriers, such as unfair, discriminatory or extraterritorial taxes (including value-added taxes) that the administration says puts U.S. products, businesses and consumers at a disadvantage.
- “Ensuring Accountability for All Agencies.” Executive Order 14215, issued on February 18, 2025, aims to enhance presidential oversight over federal agencies, including those that are traditionally independent. The order requires these agencies to submit all proposed and final significant regulatory actions to the Office of Information and Regulatory Affairs within the Executive Office of the President for review before they are published in the Federal Register. Furthermore, it establishes that legal interpretations for the executive branch are to be made by the president and the attorney general, thus prohibiting officials from adopting legal positions that contradict these interpretations. For the Internal Revenue Service (IRS), this could result in greater oversight from the White House.
- “Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Deregulatory Initiative.” Executive Order 14219, issued on February 19, 2025, calls for a comprehensive review of all federal regulations to identify and remove those considered unconstitutional, unlawful or overly burdensome, especially those impacting private businesses, small enterprises and entrepreneurship. While the order does not specifically target tax regulations, its impact on tax law will depend on how it is implemented, and which areas of the law are prioritized for reform. (See our February 25, 2025, client alert “Rolling Back the Administrative State: Understanding Trump’s Deregulatory Initiative.”)
- “Ending Taxpayer Subsidization of Open Borders.” Executive Order 14218, issued on February 19, 2025, aims to ensure that taxpayer funds are not used to support illegal immigration and to uphold the provisions of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, which “generally prohibits illegal aliens from obtaining most taxpayer-funded benefits.” The order directs federal agencies to identify and modify programs that currently provide benefits to individuals residing in the U.S. without legal authorization, potentially including tax benefits.
- “Defending American Companies and Innovators From Overseas Extortion and Unfair Fines and Penalties.” This February 21, 2025, memo instructs the Treasury and Commerce Departments, along with the U.S. Trade Representative, to identify and counter discriminatory taxes and regulations — particularly digital services taxes (DSTs) — that disproportionately impact U.S. businesses, especially in the technology sector. The memo asserts that the administration will not tolerate “one-sided, anti-competitive policies and practices of foreign governments” and is prepared to impose tariffs or take other necessary actions to mitigate harm to the U.S. Additionally, it calls for a review of foreign policies that may undermine freedom of speech, political engagement or content moderation, with recommendations for countermeasures. This move responds to concerns over DSTs and regulations in countries such as Australia, Canada and certain European Union member states, which are seen as unfairly targeting American technology companies. (See our February 28, 2025, client alert “Trump Revives and Expands the Battle Over Digital Services Taxes.”)
- “Designating English as the Official Language of the United States.” Executive Order 14224, issued on March 1, 2025, designates English as the official U.S. language. This order revokes Executive Order 13166, signed by President Bill Clinton in 2000, which had required government-funded institutions to provide language assistance to non-English speakers. Although this order specifies that agencies are not obligated to amend, remove or stop production of documents or services in languages other than English, it could have various impacts on the IRS and the Department of the Treasury, particularly regarding language accessibility, compliance and tax administration.
See the Executive Briefing publication
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