A Trump-Era Guide for European Employers

Under the new Trump administration, multinational employers are no longer preparing for change—they are operating in it. From anti-diversity, equity and inclusion (DEI) crackdowns to tariff tensions and talent mobility nightmares, global employers are increasingly grappling with a widening gap between U.S. policy shifts on the one hand and legal requirements in other jurisdictions on the other, and all in a context where changes often happen at light speed and with little or no notice. While these policy changes continue to be challenged in the courts,¹ the reality is that they have reshaped the risk landscape. Here are three key pressure points for multinational employers and how to stay resilient and ready to handle them.

1. DEI in the Crossfire: Navigating Legal Divergence 

After returning to office, President Trump issued a series of executive orders targeting DEI initiatives and policies. For example, in January 2025, a landmark executive order that required affirmative action in government contracting was repealed. Another order stated that the federal government would recognize only male and female biological sexes (not gender or gender identity). In a similar vein, in April 2025, all federal agencies were instructed to stop using disparate impact liability (for further information see here and here). But what is the particular challenge for multinational employers?

• This shift creates serious challenges for multinational employers operating in jurisdictions where DEI is not only permitted but encouraged or even legally required, including, for example, the UK, Europe, Japan and Australia (see here and here). As a result, it has become increasingly difficult to sustain a truly global DEI approach.
• Some employers might consider simply carving the United States out of any global DEI policy. While this might appear pragmatic, it presents its own risks. Executive orders do not strictly apply outside of the United States but there remains potential for extraterritorial reach—e.g., when U.S. citizens, including dual citizens, work overseas for a U.S.-“controlled” employer. Additionally, foreign entities with U.S. government contracts have faced letters requiring them to affirm compliance with U.S. federal anti-discrimination laws (see here and here for further details). 

Practical tips for navigating these challenges: Unfortunately, there is no one-size-fits-all solution for multinational employers. Legal advice, preferably under privilege, will be key to not only understanding local obligations and assessing risk but also to shaping a strategy that best addresses the complexities they face when operating across jurisdictions. Employers will also want to carefully plan and manage any internal and external communications in relation to DEI to help minimize legal exposure and mitigate potential backlash from staff and stakeholders who may hold differing views.

2. Tariff Tensions: Strategic Shifts and Workforce Repercussions

The Trump administration has implemented tariffs on more than 90 countries outside of the United States. Amid supply chain disruptions and ongoing economic uncertainty, many employers directly impacted by the tariffs have been forced to reassess their workforce needs, for example by considering temporary layoffs or reductions in force. In the longer term, some multinational employers have reconsidered shifting their business focus and inventory to the United States in a bid to avoid the tariffs and maintain access to the U.S. markets or restructuring their operations to reduce reliance on markets outside the United States.

Practical tips for navigating these challenges: Tariffs and economic uncertainty can trigger difficult workforce decisions, but local law still applies, even under pressure. To navigate this landscape, employers may want to first consider reviewing any contractual terms, policies, and collective agreements to clarify the scope for implementing layoffs or reductions in force, together with assessing the likely costs. 

Proactive transparent communication with staff can also help manage expectations and reduce both legal and reputational risk. Alongside this, local legal advice can be critical to understanding any potential legal risk from any proposed action and to ensure compliance with any procedural or consultation requirements.

3. Immigration Whiplash and Mobility Constraints

On September 19, 2025, the U.S. government announced a significant and unexpected change to the H-1B visa program (see here). The proclamation imposed a $100,000 administrative fee on H-1B petitions for foreign workers outside of the United States and those seeking entry to the United States and was stated to be effective less than two days later as of 12:01 am ET Sunday, September 21, 2025. Initially there was significant confusion around its scope, specifically, whether this fee applied only to individuals who submitted new H-1B petitions after the date the proclamation was made, or whether it also impacted any individuals who were on previously approved H-1B visas at the time who happened to be outside of the United States. Although further clarification was provided by the U.S. Citizenship and Immigration Services on September 20, 2025 (see further details here), the absence of advance notice and immediate guidance left many employers and H-1B workers scrambling to understand the implications, particularly those who were outside of the United States at the time or who were planning to travel imminently. 

More broadly, in the current climate employees may be increasingly wary about entering or leaving the United States.

Practical tips for navigating these challenges: Policy changes can occur rapidly and without warning, creating operational and legal risk for employers with mobile talent. To manage this, employers may want to consider how they can:

• Maintain up-to-date visibility over immigration status and contact details to stay connected with mobile employees at short notice.
• Work closely with U.S. and local legal counsel to access timely immigration and employment advice.
• Acknowledge and address employee concerns with clear updates, reassurance, and appropriate support.
• Plan for flexibility: longer term, employers may revisit where and how they hire.

What’s Next: How to Stay Ahead of the Curve

If the past few months are anything to go by, employers can expect more, not less, change under the current administration. Resilient organizations will be those that invest in advance scenario planning and stay closely connected to legal advisers who can help them navigate cross-border risk with local insight and strategic alignment.