US consumer sentiment fell in January for the first time in six months, dropping to 71.1 from 74 in Dec., according to the University of Michigan index. The decline was widespread across income, wealth and age groups, with concerns about unemployment rising despite stronger incomes. Inflation expectations for the next year rose to 3.3%, influenced by anticipated White House policies, including tariffs.

The National Association of Wholesaler-Distributors is among more than 200 trade associations that voiced support for making permanent the 20% small business tax deduction created by the 2017 Tax Cuts and Jobs Act, which is set to expire this year. NAW President and CEO Eric Hoplin called the deduction "crucial for wholesaler-distributors," adding "81% of wholesaler-distributors have less than 20 employees and rely on the Section 199A deduction to remain competitive."

The Supreme Court lifted an order that was stopping enforcement of the Corporate Transparency Act, a law that requires companies to disclose information about their ownership. Justice Ketanji Brown Jackson dissented, arguing that "emergency relief is not appropriate because the applicant has failed to demonstrate sufficient exigency to justify our intervention." However, implementation of the law may still be affected by a separate order from a lower court.

President Trump reiterated his commitment to put America first at the World Economic Forum in Davos, warning global leaders that he will focus on domestic priorities, even if it means alienating allies. Trump urged global businesses to manufacture in the US, offering low taxes and threatening tariffs on products made elsewhere. He also criticized the EU for imposing tariffs on American goods, claiming unfair treatment.

Chief procurement officers are prioritizing data and analytics, AI and optimization of existing technologies to drive growth and productivity. Still, many face data quality and governance challenges, which can hinder effective analytics use, writes Kaitlynn Sommers of Gartner Supply Chain. "Establishing a strong data foundation is crucial before implementing advanced analytics technologies. Organizations should prioritize use cases that deliver the most value and develop strategies and policies to support their execution," writes Sommers.

One in four businesses are planning to increase their US sourcing as a strategy to circumvent potential higher import costs due to proposed tariffs, while 32% are considering dual supply chains, according to a survey by DP World and Economist Impact. "The key seems to be balance. Leaner inventories free up some cash, while diversified suppliers reduce reliance on any single source and offer room for growth," the report states.

Businesses often consider hiring more salespeople to boost sales, but to address underlying issues, it is more cost-effective for organizations to first evaluate the current team, lead quality, marketing alignment, sales processes, customer service, sales metrics and company culture, writes Mark Allen Roberts. Organizations should also invest in training and technology to enhance productivity before expanding the sales team.

President Trump's second term has begun with an economic agenda centered on trade tariffs, tax cut extensions, and deregulation. While touting solvable economic challenges, Trump faces scrutiny over potential tariffs on China and his proposed restructuring of disaster relief funding. Corporate leaders and lawmakers remain divided on his plans, including tying disaster aid to debt ceiling negotiations and expanding his tax cuts, as Wall Street awaits clarity on regulatory changes and fiscal priorities.

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