Then presidential candidate Donald Trump speaks at a campaign rally in Fresno in May 2016. Screenshot via YouTube user WCAMStudios

With the long and eventful presidential cycle now over, the business community appears to be breathing a little easier while preparing for what Trump 2.0 might bring to its doorstep.

President-elect Donald Trump won the election with 277 electoral votes. As of Wednesday, he carried more than 71 million to win the popular vote.

Republicans have also taken control of the U.S. Senate, and are still fighting to keep a majority in the House of Representatives.

Vice President Kamala Harris and the former president made campaign promises of raising the middle class with tax cuts, lowering the costs of everyday needs, reducing inflation and creating more jobs.

According to a survey from the Associated Press, voters said the economy and immigration were the top issues facing the country.

AP VoteCast surveyed more than 110,000 voters across the nation, finding that four out of 10 voters consider the economy and jobs to be the biggest problem in the country, with frustration lingering with the spike of inflation in 2022 leading to higher costs for groceries, housing, energy and gasoline.

Trump said higher tariffs on rival and allied countries alike, as well as increased oil production, will pump up the U.S. economy.

The election also ends a period of great uncertainty for the business community. We spoke with a variety of business leaders to get their reactions to the election, as well as statewide and local measures.

Death to uncertainty

Ethan Smith, senior vice president with Newmark Pearson Commercial, said uncertainty about the policies governing the next four years have now evaporated. It’s the not knowing that makes it hard to make long-term decisions. Now investment and hiring activity can resume.

“It almost doesn’t matter who won, but now we have a president who has historically been favorable in terms of tax policy in terms of commercial real estate,” Smith said. “I think most of the people I speak with feel like this outcome is a good thing for business broadly speaking.”

Taxes, tariffs

Trump has proposed several tax policy ideas, including extending his expiring 2017 Tax Cuts and Jobs act, bringing back the state and local tax (SALT) deduction he restricted to $10,000 per filer, reducing the corporate tax rate for domestic production, repealing green energy tax credits and imposing new tariffs on several countries.

He has proposed a 10% tariff on imports and a 60% levy on Chinese made products, as well as a 25% tariffs on all goods from Mexico.

Trump’s proposed corporate tax rate will go from its current 21% to 20% and then further reducing  to 15% for companies that make products in the U.S.

Mike Betts, CEO of truck parts manufacturer Betts Company, said that a majority of manufacturers in not only California, but across the nation, are ecstatic that Trump was elected.

“The future looks pretty bright for manufacturing,” Betts said. “His tax policies are pro-manufacturing and doesn’t believe in taxing manufacturers more to make it more difficult than it already is.”

Betts noted that manufacturers have to pay some of the highest taxes in the nation. He said manufacturers need to grow as costs go up, or they’ll fall behind. Trump will provide the ideal environment.

Betts said that California has been falling behind with its manufacturing sector, but believes that under a Trump presidency, it will have a resurgence.

Farm growth

The California Farm Bureau issued a statement Wednesday that it is looking forward to working with the new administration and congressional leaders to advance meaningful legislation.

Farmers are preparing to bolster themselves for possible disruption caused by Trump’s proposed tariffs in the form of economic retaliation from other countries.

Joe Del Bosque, owner of Del Bosque Farms, which grows melons, almonds, cherries and more, said that most farmers are likely pleased with the election results. But some of Trump’s immigration proposals are worrisome, including promises of mass deportations.

“There is a concern about immigration for those of us that hire a lot of farm laborers,” Del Bosque said. “We need to reach out to the incoming administration to talk about that issue.”

He thinks the administration would be receptive of farmers’ concerns if enough of them band together.

Del Bosque said that farmers that have crops that can be mechanically harvested might not be as concerned as farmers that have more laborers, but all farmers should be on the same page.

Immigration reforms are needed, especially to bolster the agricultural workforce, he added.

Del Bosque said he is hopeful that Trump will help Central Valley farmers and growers find ways to secure a more reliable water supply.

Local results

Scott Miller, president of the Fresno Chamber of Commerce, said the chamber did not take a position on the presidential race, but did call on support for certain local bonds and measures, including the Proposition 36 public safety measure.

The Chamber also supported Measure H, the $500 million bond measure for Fresno Unified School District’s facilities and infrastructure improvements. It appears that measure will pass.

The Chamber supported Measure Q, a $698 million general obligation bond for State Center Community College District, which appears headed for approval.

While the Chamber supported the incumbents in the Fresno County Board of Supervisor’s race based on the idea that the board has done well for the business community, there is a consensus that the projected winners, Fresno City Council Members Luis Chavez and Garry Bredefeld, will serve businesses well also, Miller added.

Housing markets ‘agnostic’

J.P. Shamshoian, CEO of Realty Concepts, said the housing markets are mostly “agnostic” as far as national political outcomes. He said what’s really going to matter for his industry is if inflation continues to shrink so interest rates follow. Or wages must rise in our area to support homebuying activity in the current market.

“If the Trump Administration can figure out a way to crack the code, it should help improve the housing market. And if not, I think we’ll continue to see the number of annual transactions lag behind normal. Regardless, prices will likely continue to rise over time regardless of which party holds the White House.”

He said the real estate community is also pleased with the outcomes of several ballot measures, including the rejection of local rent control measures (Proposition 33) for the third time in the last decade.

Public safety, minimum wage

Of particular interest to the retail and hospitality sector was Proposition 32, which would raise the California minimum wage to $18 an hour, and Proposition 36, the public safety measure that increases penalties for certain theft offenses and drug crimes.

Ali Nekumanesh, executive vice president at Deli Delicious Franchising, said that the state has recent experience with minimum wage increases — and their fallout.

“In California, regarding QSRs (quick serve restaurants), the minimum wage is at $20. The result of that has been obviously some stores closing,” he said. “The meaning of it not passing means that the constituents want to let the market dictate what people make.”

Government-driven market forces have also put pressure on mom-and-pop stores to raise their wages, he added.

“The already thin margins are constricted to a point where we’ve seen so many stores closing,” he said.

Regarding public safety and Prop. 36, Nekumanesh said his businesses have been victimized in the past. There was nothing that law enforcement could do because their hands were tied.

“We are hoping that this proposition will help narrow that down and put some teeth into the enforcement of the perpetrators,” he said.

Dave Fansler of Fansler Restaurant Group said that Prop. 36. “is just getting back to reality.”

Fansler has not been a victim of smash and grab or burglaries, but has had customers dine and dash, which falls under the same category as theft and burglary.

A numbers guy who passed the CPA exam, Fansler was glad voters shut down another minimum wage bump.

“All this craziness about raising the minimum wage has got to stop,” he said. “It’s just very inflationary.”

“We need to really step back for a little bit,” he added.