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Tariffs, DEI, AI —Oh My! What Leaders Must Do NOW to Stay Ahead

Tariffs, DEI, AI —Oh My! What Leaders Must Do NOW to Stay Ahead

February 04, 20256 min read

If you hear “tech industry” and only think of Google, Amazon, or Microsoft, I’ve got news for you—99% of tech businesses in the U.S. are small and medium-sized businesses. Yep, SMBs ARE the tech industry.

And if you’re leading one—whether you’re the CEO, a VP, or a Director driving the ship from the trenches2025 is already testing you.

Tariffs are hitting supply chains. Compliance costs are rising. Hiring trends are shifting. And yet, somehow, you’re still expected to deliver more growth, more efficiency, and more results with fewer resources—because that’s just how leadership works, right?

The leaders who win in 2025 aren’t the ones waiting for stability. They’re the ones who pivot fast, adapt, and take charge before change steamrolls them.

So let’s cut through the noise and break down what’s coming, how it’s going to punch your business in the gut, and what you can do about it—whether you’re calling the shots at the top or leading from the middle.

The Big Shifts That Are Reshaping 2025

1️⃣ Tariffs Are Coming for Your Margins—Hope You Planned for That

📌 What’s happening:

  • 25% tariffs on imports from Canada & Mexico

  • 10% tariffs on imports from China

📌 What this means for you:

  • Hardware, chips, networking gear? Yeah, they’re about to get a whole lot pricier.

  • SaaS companies relying on cloud infrastructure? Get ready for higher costs.

  • Supply chains are scrambling—expect delays, price hikes, and headaches.

💡 Leadership Move for Executives:
If you haven’t started renegotiating contracts or finding alternative suppliers, you’re about to take a financial hit. Get ahead of the cost increases before they eat into your margins. Look into domestic alternatives, supplier renegotiations, and pricing adjustments NOW.

💡 Leadership Move for Directors & VPs:
You’re the one who’s going to feel the brunt of this first. That big infrastructure project? It’s suddenly a lot more expensive. Your boss wants cost savings and zero slowdowns—which means you need to get creative with vendors, budgets, and team efficiency. Bring solutions, not just problems.


2️⃣ The Government Dropped DEI—What Happens Next?

📌 What’s happening:

  • The government ended DEI mandates in federal agencies.

  • Some private companies may follow suit, but it’s NOT required.

📌 What this means for you:

  • If your company works with the government, double-check hiring & compliance policies.

  • No, the tech talent pool isn’t suddenly going to look different overnight.

  • If you gut your workplace culture, expect morale (and retention) to nosedive.

💡 Leadership Move for Executives:
This is where culture separates good companies from great ones. If you’ve built an environment where top talent thrives, DEI rollbacks won’t change your hiring strategy. If you start backing away from inclusivity, expect attrition and declining engagement.

💡 Leadership Move for Directors & VPs:
You’re on the front lines of culture. Your team looks to you—not just the CEO—to create an environment where they feel valued and motivated. Are you leading with inclusivity? Are you keeping top talent engaged? Whether policies shift or not, your team’s trust and buy-in starts with YOU.


3️⃣ AI & Privacy Regulations Are Coming—And They’re a Compliance Nightmare

📌 What’s happening:

  • AI & privacy regulations are being drafted, mainly aimed at Big Tech…

  • …but SMBs are NOT off the hook.

📌 What this means for you:

  • If you use AI for automation, decision-making, or customer service, expect new compliance hoops.

  • Privacy laws are about to tighten—handling customer data? You better be ready.

  • More regulations = more risk = higher costs.

💡 Leadership Move for Executives:
Get ahead of this now. Compliance costs money—but non-compliance costs more. If AI and data privacy are critical to your business, invest in expertise and legal foresight NOW before the rules tighten.

💡 Leadership Move for Directors & VPs:
You’re probably the one actually implementing AI or managing data strategy—so you need to be the first to spot risks. If legal throws a last-minute bomb your way, you don’t want to be scrambling. Raise the concerns NOW. Be the proactive leader who sees it coming.


4️⃣ A Rare Silver Lining: SMB Tax Deductions Might Actually Help You

📌 What’s happening:

  • Proposed legislation would allow SMBs to deduct up to $20,000 in hospitality expenses.

📌 What this means for you:

  • If you spend on client dinners, networking, team retreats, this is good news.

  • Hybrid & remote teams? This might be the perfect excuse for that long-overdue team offsite.

💡 Leadership Move for Executives:
If this passes, use it to your advantage. Retention matters—invest in team-building, client relationships, and culture.

💡 Leadership Move for Directors & VPs:
A retreat, offsite, or team event isn’t just a perk—it’s how you keep your team engaged and connected. If this tax deduction goes through, lobby for that budget now.


🚀 Your Leadership Playbook for 2025: How to Stay Ahead

✅ 1. Adapt Fast – No One’s Waiting for You to Figure It Out

Executives: Your job is to see the big picture and move first. Get ahead of cost shifts, supply chain risks, and compliance headaches.
Directors & VPs: Your job is to execute and keep things moving. You can’t afford to sit back—you need to lead up, push for strategic changes, and solve problems before they hit.

✅ 2. People & Culture Still Matter – Don’t Let This Be Your Blind Spot

Executives: Culture is the glue holding your talent together. If you ignore it, good luck keeping people around.
Directors & VPs: You set the tone for your team. If morale is dropping, it’s your job to address it before it spirals.

✅ 3. Innovate & Reposition – Change Creates Opportunity

Executives: Disruptions create market openings. Be the company that moves first.
Directors & VPs: You’re the boots on the ground. Spot the inefficiencies, suggest the pivots, and be the leader who sees opportunities before the execs do.


The Leaders Who Win in 2025 Are Already Moving

We’ve been talking about this for weeks. The shifts, the risks, the changes coming down the pipeline. Well… they’re here.

Tariffs? Check.
DEI rollbacks? Happening.
AI regulations? In motion,
With much more to come.

No more "we’ll deal with it later." Later is now—and if you’re not moving, you’re already behind.

I talk a lot about helping leaders navigate their "Oh Crap" moments. The ones that hit out of nowhere, shake up your business, and demand a response yesterday.

The leaders who win in 2025 are the ones who adapt before they have to.

Here’s the deal: You don’t have to figure this out alone.

If you’re looking at your strategy and wondering how to adjust, let’s talk.
If you’re feeling stuck, overwhelmed, or just need a sounding board—I’m here.

DM me. Let’s make a plan that keeps you ahead, not scrambling to catch up.

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Jim Saliba

James is a 30+ year veteran in the Software and Technology industry. He shares with you his years of experience and winning ways to become a successful leader, while becoming 'unstuck' from the overwhelming challenges that hold us back from complete success.

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