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The tariffs imposed by the Executive Order (EO) are expected to significantly impact the energy and infrastructure sectors. New build energy projects in the United States heavily depend on importing components such as inverters, transformers, cabling, solar panels, mounting racks, and batteries from regions such as Southeast Asia, China, and the European Union. These tariffs are likely to affect all energy and infrastructure projects.
We are seeing large capital projects across the United States impose caveats within their EPC contracts; allowing for steep and continual price adjustments upward. This is impacting billions of dollars of critical material and contractual obligated componentry. This also includes all materials with high volatility (steel, copper, aluminum). Not only are projects costs on the rise but so are supply chain disruptions, potentially causing delays in project timelines and/or project cancellations.
The United States continues to grow in energy demand requirements, provided the vast deployment of data centers. Because of this grid reliability, modernization and new build implementation is critical in the coming decade. The tariffs are likely to have a large impact on these projects as well, given their requirement for componentry from all the regions impacted.
As this situation continues to develop, the full implications and responses for the energy and infrastructure industry will become more apparent.
Jeremy Erndt is a seasoned power development, engineering, and operations professional, with experience in power generation, infrastructure, and the sector with J.S. Held.
He has led utility-scale power, transmission, port, and water projects from early development and conceptual design through NTP and eventual operation. He is an international development expert and supports a variety of programs for capital project development. Jeremy is a subject matter expert in project due diligence, engineering, and constructability for large-scale projects. Jeremy has been involved in various project-related and company mergers and acquisitions, thus providing a comprehensive track record and perspective of financial transactions at all stages. He has nearly two decades of experience in the development, engineering, construction, and operations of energy and infrastructure projects, spanning more than 30 GW within energy projects and over $60B of capital expenditures within infrastructure.
Looking to know more or connect with Jeremy Erndt? Simply click on the expert's icon now to arrange an interview today.
For any other media inquiries - contact :
Kristi L. Stathis, J.S. Held
+1 786 833 4864
Kristi.Stathis@JSHeld.com
This is the first installment in a series examining the multifaceted impacts of tariff and trade policies. By delving into the nuances of these policies, we aim to provide valuable insights and perspectives that will inform strategic business decision-making and foster resilience in an increasingly volatile global market. Future papers in this series will explore the specific implications for key sectors such as agriculture, energy, and construction, offering targeted analysis and recommendations to help businesses navigate and thrive amidst evolving trade landscapes. The global trade landscape is experiencing rapid shifts driven by escalating tariffs, geopolitical realignments, and supply chain disruptions. In North America, businesses must navigate changing US trade policies, evolving trade agreements such as the United States-Mexico-Canada Agreement (USMCA), and the broader implications of international trade tensions. These developments may have significant economic implications which impact supply chains, regulatory compliance, financial strategies, and heighten geopolitical risk.
Trade policies across the world are being redefined, with tariffs increasingly used as economic and political tools. The US, China, and the European Union are at the center of these shifts, reshaping global supply chains and trade routes. Businesses must reassess their sourcing strategies, financial models, and regulatory compliance efforts in response to these evolving dynamics.
In North America, the US has intensified its use of tariffs, impacting trade with Canada, Mexico, and numerous global partners. While these policies aim to boost domestic industries, they have introduced supply chain challenges and regulatory complexities. As a result, companies must proactively adapt to maintain operational efficiency and financial stability.
This article examines the challenges and opportunities that may arise from these trade shifts and provides insights for businesses to mitigate risks and maintain competitiveness.
At J.S. Held, we help businesses navigate these challenges by providing insights into regulatory changes, trade risks, and strategic adaptations to ensure long-term resilience.
"With the sweeping April 2 tariff announcement, U.S. trade policy has entered a new phase. One where national security, economic leverage, and regulatory unpredictability intersect. Businesses are now navigating not just targeted tariffs, but a universal cost layer that may touch nearly every sector. The urgency to adapt through exemption strategies, supply chain restructuring, and trade compliance has never been greater." The full report is accessible below, and is a must read for anyone covering the impacts of the tariffs announced by President Trump on April 02, 2025.
Looking to know more or connect with Andrea Korney? Simply click on the expert's icon now to arrange an interview today.
For any other media inquiries - contact :
Kristi L. Stathis, J.S. Held
+1 786 833 4864
Kristi.Stathis@JSHeld.com
Off-channel communications (OCC) occur when employees use unapproved and inadequately protected devices – such as personal cellphones – or applications to communicate with co-workers, counterparties and / or clients. Many financial services firms are required to maintain copies of all communications regarding their business, supervise the same, and produce them in response to regulatory requests. Firms cannot meet those compliance obligations when employees resort to unauthorized OCC for business-related matters.
In charging 15 broker-dealers and one affiliated investment advisor in September 2022 with record-keeping violations, the SEC noted that its investigation uncovered employees at all levels of these firms who routinely used text messaging apps on their personal devices to discuss business matters between January 2018 and September 2021 [1]. The firms settled the charges and agreed to pay penalties totaling more than $1.1 billion. Just as important, the firms also agreed to engage independent compliance consultants to ensure the use of OCC meets regulatory standards as part of the settlements.
In a related move [2], the Commodity Futures Trading Commission (CFTC) ordered 11 financial institutions to pay more than $710 million for recordkeeping and supervision failures for widespread use of unapproved communication methods such as personal texts, WhatsApp, and Signal. Additionally, the Financial Industry Regulatory Authority (FINRA) has also taken action when it comes to OCC.
Antonio Rega, digital forensics, data governance, privacy, security, emerging technology, and discovery expert with J.S. Held, observes, “While the current administration has loosened certain regulatory enforcement near-term, we continue to observe requests from clients in supporting management of “off-channel” communications, with a particular focus on 3rd party chat messaging platforms on mobile devices, such as Whatsapp. These inquiries include supporting corporate stakeholders with internal auditing of their organizational platforms, policies and procedures.” By implementing effective processes and utilizing software and outside experts to monitor and detect OCC, broker-dealers, investment advisers, and other financial institutions can reduce the risk of regulatory enforcement and penalties and ensure that they remain in compliance with regulations.
Steve Strombelline, regulatory and enterprise risk management expert with J.S. Held adds, “Although concerns typically impact broker-dealers, firms outside of financial sectors are looking closely at their messaging processes as well, which is advisable." In addition to guaranteeing that these communications are properly documented and retained, the regulations are set up to prevent the use of OCC to manipulate securities transactions or commit fraud and to ensure that it is not used to violate any other securities laws. Firms’ supervisory procedures must be reasonably designed to detect for OCC when they monitor for such activity.
The following article discusses the risks that OCC pose for financial services firms, especially as the SEC, FINRA, and the CFTC have made it clear that they are now targeting firms throughout the industry about their OCC to see if they are recording and preserving business information according to regulations.
The piece also explains how firms, including broker-dealers of all sizes, should manage their OCC to ensure that they and their employees comply with federal securities laws and regulations.
Finally, the authors address the complexity related to the collection of OCC in response to regulatory enforcement investigative requests. As the fines and settlements between those firms and the SEC exemplify, financial services firms of all sizes need to take this regulatory focus seriously and take the proactive step of engaging an independent third-party with expertise and experience in both digital forensics and compliance issues.
To read the full article and learn more about the risk of off-channel communications and how companies should manage their OCC to remain compliant, click on the button below:
To connect with Antonio Rega simply click on his icon now.
To arrange a conversation with Steve Strombelline or any other media inquiries - contact :
Kristi L. Stathis, J.S. Held
+1 786 833 4864
Kristi.Stathis@JSHeld.com References
[1] https://www.sec.gov/news/press-release/2022-174
[2] https://www.cftc.gov/PressRoom/PressReleases/8599-22
