According to a popular view on the political left, businessmen want to control the government and our lives in service of their profits. So when a businessman like Donald Trump becomes president, it might seem to confirm their worst fears about “plutocracy.”
But since Trump assumed office, not many CEOs resemble plutocrats. If anything, they’ve been treated as pawns, not kings.
A recent eye-opening Wall Street Journal story tells of a March 11 meeting of CEOs of major corporations, during which news broke that Trump was placing massive new tariffs on Canadian steel and aluminum. In that closed-door setting, the CEOs are reported to have responded with shock and concern.
The organizer of the meeting polled the attendees: 70 percent were concerned about the economic effect of the tariffs; 80 percent reported “apologizing” to international contacts for Trump policies.
CEOs should know how Trump’s tariffs have wreaked havoc on their businesses.
Retailers such as Walmart, Target and Home Depot have had to negotiate discounts from overseas suppliers or shift production to new countries. Others have had to work overtime to craft contingency plans in the face of uncertainty about supply chains. Others have just absorbed the costs and accepted lower profits. Leaving aside importers, exporters like Tesla now worry they may face retaliatory tariffs on their products.
Yet following the March 11 meeting, many of the same CEOs shuttled to a meeting later that day with President Trump himself. That meeting was “cordial” and without “pointed questions” about tariffs. Few CEOs have spoken out publicly about them: According to the poll cited above, 44 percent of them would not speak out until stocks fell 20 percent; 22 percent would not pipe up until stocks plunged 30 percent.
If CEOs know these tariffs are threatening their own businesses, why don’t they speak up? Why are these “plutocrats” so passive?
The author of the Journal report offers a simple explanation: “They're scared. They're worried they're going to be targeted, they're worried their businesses are going to suffer.”
Indeed, they have much to fear.
Tim Cook, CEO of Apple, has to worry about the antitrust suit filed against his company by the Biden administration, but which Trump has not dropped.
Jamie Dimon of JPMorgan Chase and Jan Fraser of Citigroup have to worry about the bill in Congress inspired by Trump’s idea to cap interest rates on credit cards. Mary Barra of GM has to worry about the renewal of steel tariff exemptions at the end of the month.
Trump is now reported to have threatened that automakers would be punished if they raise prices to pass on the cost of the tariffs to consumers.
All of these CEOS could be audited by the IRS. Mark Zuckerberg even has to worry about Trump’s threat that he could “spend ...
