CEOs Stay Silent: Fear of Trump Keeps Them Off His Radar
Several CEOs from top Fortune 500 firms are apparently making efforts to refrain from making public statements that might be interpreted politically, to avoid attracting criticism from President Donald Trump.
That’s according to
an article published on Wednesday in the New York Times
, as noted, corporate leaders have become more cautious when addressing shareholders regarding Trump’s tariffs. Although the initial 145% tariff on Chinese goods was reduced to 30%, chief executive officers remain apprehensive about openly stating their intention to increase product prices to offset declining profit margins.
“Businesses must come to terms with the reality that politics has infiltrated almost all aspects of their operations and integrate these factors into preparing their CEOs,” said corporate consultant Brett Bruen.
Times
.
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For retailers heavily reliant on Chinese imports, such as Walmart, the increased expenses due to tariffs have turned into a particularly touchy subject. During a recent earnings call with investors, Walmart’s CEO Doug McMillon mentioned that although he appreciated the reduction in import taxes to 30%, his company still faces challenges.
it’s still probable that we’ll need to increase prices
To offset the increased trade tariffs, Walmart planned to adjust prices on its products. However, Trump criticized McDonald in a posting on his Truth Social platform, darkly hinting that he would keep an eye on Walmart to ensure they “absorb the tariffs” rather than passing them onto customers.
Stop having Walmart cite tariffs as the justification for increasing costs across their stores.
Trump wrote
Walmart raked inBILLIONS OF DOLLARSlast year, surpassing expectations. Along with China, they should manage to’EAT THE TARIFFS’and avoid passing along any costs to their loyal customers. I’ll be monitoring this situation closely, as will all of their patrons!!!
David Swartz, a senior equity analyst at the Chicago-based company Morningstar, informed the Times that he anticipates CEOs will be particularly evasive when addressing investors during upcoming earnings calls to prevent upsetting the president.
“Afraid of Trump? Absolutely,” Swartz stated. “No one wishes to catch his attention, and even though Walmart and Mattel only mentioned rather insignificant issues — facts that are clear — he becomes angry with them basically because they state truths resulting from his actions.”
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