US President Donald Trump has signed a new executive order halting prosecution of American citizens for bribing foreign officials. This order directly impacts the Foreign Corrupt Practices Act (FCPA) of 1977, the same act under which Indian businessman Gautam Adani is charged.

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Trump has ordered the newly elected Attorney General Pam Bondi to 'immediately stop' actions taken under FCPA. According to Trump, the act discourages foreign businesses from doing business with 'Americans.' 'It sounds good on paper, but in practicality, it's a disaster,' Trump said. 'It was a Jimmy Carter concept, and it sounds so good, but it's so bad. It hurts the country and many, many deals are unable to be made because nobody wants to do business,' he added.

FCPA's influence

US authorities have indicted over 35 companies every year under the FCPA act. 31 companies are under investigation in 2024. This includes the case against Adani, which wiped off substantial money from its group companies in a matter of days. While the money was recovered and the Adani group dismissed the allegations as 'baseless,' the charges were serious enough for investors to be sceptical. Now with the recent announcement, Adani shares posted notable gains as investors access the fresh circumstances. The White House has announced that all FCPA-related actions will be reviewed, along with new, relaxed enforcement guidelines for future cases.  

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This recent order by Trump comes as India's prime minister, Narendra Modi, is set to visit the US for bilateral talks on February 12. PM Modi would be looking to strengthen US-India relations further, especially as the global trade landscape trembles under Trump's tariffs.