Shopify CFO Believes Trump’s Campaign Promises Won’t Impact Entrepreneurship
Shopify Inc. executives dismissed concerns about the potential negative impact of incoming U.S. President Donald Trump on the company’s merchants.
During a call with analysts on Tuesday, Shopify’s chief financial officer Jeff Hoffmeister stated, “There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship.”
Hoffmeister reassured, “We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
These comments come in the aftermath of Trump’s victory over Harris in the election.
During his campaign, Trump threatened to impose tariffs on imports from China and other countries, causing concern about increased operational costs for companies, including Shopify’s customers.
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Concerns abound that merchants may pass on the increased costs to customers, potentially fueling inflation.
Although Trump’s tariffs may not heavily impact Shopify’s dealings with China, President Harley Finkelstein emphasized the importance of adapting to uncertainties in different administrations.
He compared the current situation to Shopify’s response to the COVID-19 pandemic, stating, “Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well.”
During a call to discuss Shopify’s latest earnings, Finkelstein addressed questions about the upcoming U.S. leadership change. Shopify’s stock rose significantly after reporting a strong third-quarter performance.
The company, based in Ottawa and keeping its books in U.S. dollars, saw an increase in net income and revenue compared to the same quarter the previous year.
Shopify’s positive financial results reflect its position as a leader in e-commerce and its ability to gain market share. The company expects continued revenue growth in the fourth quarter of 2024.
