The author discusses how American business leaders and corporations responded to the return to power of Donald Trump. Some business leaders expressed a desire for a regime that would challenge "wokeness," with one banker reportedly stating, "I feel liberated. We can say ‘retard’ and ‘pussy’ without the fear of getting cancelled… it’s a new dawn." Following January 6th, many corporations initially ceased donations to Republicans but resumed them after facing threats of retaliation.
Perceptions of Management and Policy
These leaders reportedly believed the events of January 6th were an isolated incident and that Trump's administration could be managed, particularly with figures like Treasury Secretary Scott Bessent, a former hedge fund manager, involved. They interpreted Trump's rhetoric on immigration, trade, and democracy as tactical rather than substantive. Bessent himself reportedly described Trump's tariff threats as a "bargaining tactic." This perspective was reportedly reinforced by anticipated corporate profits from policies such as tax cuts, reduced environmental regulations, and lax financial oversight.
Policy Escalation
The author argues against the perception that Trump consistently backs down on his policies. The author states that while some actions may appear to be temporary retreats, the administration generally shows a pattern of escalating actions, citing examples related to tariffs and immigration.
Economic and Personal Risks for Business Leaders
The author contends that many in the business community hold an unfounded belief that they will remain unaffected by Trump's policies, despite indications of potential negative impacts. The author highlights that US corporate investments in Europe, estimated at $4 trillion, could be at risk if a confrontation involving Greenland leads to broader international tensions.
The author also discusses the increasing personal risks faced by business leaders under a regime perceived to demand public demonstrations of loyalty. As an example, Scott Bessent, Treasury Secretary, publicly defended Trump's actions concerning Greenland and NATO. When asked to justify tariffs for Greenland under national emergency powers, Bessent stated, "The national emergency is avoiding a national emergency." The author characterizes Bessent's public posture as a significant compromise.
Corporate Dilemma and Retaliation Examples
The author suggests that corporate leaders attempting to manage the administration may face significant costs, including demands for financial contributions beyond campaign donations and public endorsement of policies. The author cites examples where Trump criticized business leaders:
- Darren Woods, CEO of ExxonMobil, for stating Venezuelan oil is "uninvestable."
- Jamie Dimon, CEO of JPMorgan, for suggesting the Federal Reserve's independence should be maintained.
Following Dimon's comments, Trump reportedly criticized him and threatened legal action against JPMorgan. The author notes that a Department of Justice investigation into Fed Chair Jerome Powell was initiated after he reportedly did not follow Trump's orders on interest rate policy.
Call for Collective Action
The author concludes that business leaders face a choice between continued public appeasement, which the author states may lead to further personal and reputational costs, or collective resistance. The author argues that public opposition to the administration's perceived authoritarian actions is increasing, and that the administration's policies are becoming more extreme.