CEOs Can Stop White House Attacks -- If They Act Now

[JohnSJ]

There’s strength in numbers. But the longer business leaders wait to respond, the weaker they get.

By Gautam Mukunda

On Saturday, President Donald Trump wrote a Truth Social post demanding that Walmart Inc. “EAT THE TARIFFS” rather than raise prices to reflect the increased costs caused by his trade wars. Walmart isn’t the only company Trump has gone after recently; Mattel Inc., the Boeing Co. and Apple Inc. have all been targets of the president’s threats.

For CEOs, these attacks make three things clear. One, economic realities will make it obvious that the tariffs were sold to the public on false pretenses. Two, the political blowback from this will lead Trump to make impossible demands of them. And three: No one can stand alone against the president. If business leaders want to protect themselves from his commands, they will have to keep in mind Benjamin Franklin’s advice: “We must all hang together, or assuredly we shall hang separately.”

Let’s unpack these lessons one by one. First, Trump’s message to Walmart admits what anyone with even a basic understanding of economics already knew: that his claims that foreign countries would pay the tariffs were false — i.e., if Walmart needs to absorb the cost, it’s not being paid by someone else. Selling a policy on false pretenses creates untenable expectations (Democrats may ruefully recall President Barack Obama’s broken promise, “If you like your health care plan, you’ll be able to keep your health care plan”) and disappointment when these expectations are not met. And when a politician faces the disappointment of his electorate, he’s likely to look for someone to blame.

That brings us to the president’s impossible demands of business leaders. In Walmart’s case, 60% of its imports are sourced from China and in Q1 of 2025 it had a net profit margin of 2.71%. Unless CEO Doug McMillon intends to turn Walmart into a nonprofit, it cannot absorb even the 10% tariff Trump has put on all imports, much less the 30% rate on China. Trump has also insisted that Apple stop expanding iPhone production in India and instead move it to the US. Although CEO Tim Cook has not yet replied, it’s unlikely that the company could comply, as estimates suggest that iPhones manufactured domestically would cost $3,500, an “Apple Tax” that even the most devoted fans seem unlikely to accept.
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Any CEO who makes the mistake of trying to act alone will stand naked against the full power of the White House. What one person can’t do, however, a group can.

Business leaders acting together are perhaps the most powerful force in American politics. Ross School of Business Professor Mark Mizruchi’s brilliant book The Fracturing of the American Corporate Elite describes how, from World War II to the 1970s, American business leaders worked together to push the US government to fulfill national goals ranging from the interstate highway system, to civil rights, to supporting the poor and elderly."

https://www.bloomberg.com/opinion/articles/2025-05-23/how-ceos-can-fight-back-against-trump-tweets-and-attacks?srnd=homepage-americas

[LearnedHand]

1. I think I shant hold my breath waiting for this

If business "leaders" haven't already realized the forced empoverishment of their customers will decimate their businesses, they aren't likely to figure it out now and even less likely to act in any manner other than what the shareholders want.

Note: Article is paywalled.

[mwmisses4289]

2. But many of these ceo's and corporate entities already

knew this, and attempted to tell it, and it basically told them to eff off and die. That's why its lowered the tariffs somewhat, but not a lot. I wonder if it promised these folks it would lower the tariffs in exchange for something.