The Relationship Between CEOs and the Trump Administration
The CEOs of major companies in the Americas have been trying to navigate the complexities of the Trump administration by writing large checks for its inauguration fund and releasing press statements about their investments in domestic production. However, this approach of being overly cautious and not speaking out against the administration’s policies may not be the most effective way to deal with the situation.
The Limits of Calm Diplomacy
The trade war between the US and other countries has been ongoing, and no US company seems to have secured immunity from the effects of the tariffs. Despite the efforts of companies like Nvidia to invest in domestic infrastructure, the White House has still imposed restrictions on their operations. This suggests that calm diplomacy may not be enough to resolve the issues, and companies may need to take a more proactive approach to protect their interests.
The Amazon Example
A recent example of the Trump administration’s sensitivity to dissent from corporate America is the reaction to Amazon’s consideration of displaying the costs of tariffs on its products. The White House saw this as a "political act" by the company, and the president personally called the CEO, Jeff Bezos, to express his displeasure. This incident highlights the risks that companies take when they speak out against the administration’s policies, but it also suggests that there may be opportunities for companies that are willing to take a stand.
The Risks and Opportunities of Resisting the Administration
While it is true that the Trump administration has a history of retaliating against companies that oppose its policies, it is also possible that companies that take a stand may be able to gain an advantage in the long run. According to Scott Galloway, a professor of marketing at the NYU Stern School of Business, the first executive to resist the president’s policies could gain significant benefits in terms of reputation and commercial advantage.
The Importance of Speaking Out
Galloway argues that most CEOs agree that the Trump administration’s policies are "dangerous and stupid," and that this creates an opportunity for companies to take a stand. He suggests that companies like Nike, which have a strong brand and a history of taking bold action, may be able to use their platform to promote American values and resist the administration’s authoritarian tendencies.
The Current State of the Administration
The Trump administration’s approval ratings are at an all-time low, with only 22% of Americans strongly approving of the president’s handling of his job. This creates an opportunity for companies to speak out against the administration’s policies without fear of reprisal. As Galloway notes, standing up to the administration may be painful in the short term, but it could offer enormous opportunities in the long term for companies that are willing to take a stand.
The Potential for Legendary American Brands to Take a Stand
Galloway believes that the biggest commercial opportunity lies with the CEO of a legendary American brand, such as Nike, Walmart, or Apple. These companies have the platform and the resources to promote American values and resist the administration’s authoritarian tendencies. By taking a stand, these companies could gain a significant advantage in terms of reputation and commercial advantage, and could potentially become leaders in the resistance against the Trump administration’s policies.
