President Trump’s second term began with a series of executive orders that immediately affected the conference industry.
On January 20, Trump signed an executive order at the inauguration ceremony, “ends radical and wasteful administration DEI program and favors.” It eliminates the federal Diversity, Equity, and Inclusion (DEI) program. All federal DEI employees were also asked for leave.
The federal agency’s response is to cancel or reduce DEI-related events. These include training, conferences and commemorations of Heritage Month.
The company quickly followed suit. Many people withdraw from public commitments and incidents to avoid regulatory scrutiny or loss of federal business.
Another Trump order directs federal agencies to define gender as strictly male or female. This move creates legal and logistical barriers for Pride events and inclusive meetings.
“The executive orders over the past 100 days involve more than one executive order. They have released a wave of presidential actions, many of whom are invisible in coding language, aiming to sow, exclude and historical inequality,” said Rhonda Payne, founder and CEO of Flock Theory. “But there is a counterintuitive truth. This political overdose is actually strengthening the core of DEI. It reveals who are only on the surface and who are committed to the real work.”
Medical meetings face damage
The Trump administration has implemented or attempted to freeze on federal grants and loans, including loans that support healthcare research and science conferences. While some freezes face legal challenges and are temporarily blocked, the government says it continues to review and reduce federal spending on research and health care conferences.
Funding cuts or uncertainties at institutions such as the National Institutes of Health (NIH) and FDA have resulted in fewer sponsored medical conferences, reduced activity budgets, and less support for travel and participation, especially for early career researchers and underrepresented groups.
Medical and scientific conference planners are dealing with the new landscape and no longer guarantee access, funding and conference attendance, said Pat Schaumann, president of Schaumann Consulting Group.
Cancel the installation
Providence Warwick Conference and Visitors Bureau received its first meeting cancellation on January 27 on Rhode Island. The conference focused on renewable offshore wind energy, which includes 3,300-room nights, is expected to bring in direct spending of $1.8 million.
Three more cancellations include meetings for veterans affairs and another for the IRS. These groups represent $2.4 million in direct spending and 5,235 lost rooms nights.
Hotel lobbyist president Brett Sterenson is a live-choose company that works primarily with government events and has canceled 58 cancellations representing $2.5 million in lost hotel revenue.
“The cancellations have slowed down in recent days, probably because there are few cancellations, but new bookings are small and extremely last. They are not close to replacing mass cancellations, but there is at least one sign of life,” Sterenson said.
Trump’s tariffs increase activity costs
On March 4, a 25% tariff was imposed on goods from Mexico and Canada, prompting Canada to retaliate against tariffs on U.S. imports, including steel and aluminum products, agricultural products, electrical appliances and wine.
The cost of basic materials for tariffs increases. Includes booths, stages and audio-visual equipment, squeezing organizers and exhibitor budgets.
The promotional product industry has suffered a particularly severe blow. A 31-year-old supplier of promotional products had to leave 70 of his employees.
Planners are now including provisions in their contracts to mitigate the impact.
Uncertainty casts the future
Geopolitical tensions, shifting policies and economic fluctuations have created uncertainty. Event professionals say the client is hesitant. The signing schedule is growing. Long-term planning is very challenging.
Meanwhile, Trump refocused on difficult meetings and conventions for restrictive immigration to AIS. Visa reviews have intensified, more paperwork and slower processing times make it harder for international participants to enter the United States
Strengthen visa reviews, increased documentation requirements and extended processing times make it harder for international representatives to ensure access to the United States
As a result, some groups are transferring U.S.-based activities to the rest of the world.
Inspiring industry leaders are not only uncertain about destination decisions, but also whether certain clients’ plans will happen.
