‘Stay below the radar': corporate America goes quiet after Trump's return
From vast protests and all-caps social media posts to acrimonious legislative hearings and pugnacious White House statements, Washington has perhaps never been noisier. But since Donald Trump's return to office, one corner of civil society has been almost eerily quiet.
Those leading corporate America rapidly turned down the volume after the president's re-election. Gone are the days of political and social interventions, highly publicized diversity initiatives and donations to important causes.
For months, some of the most powerful firms in the world have nervously navigated a dangerous US political landscape, desperate to avoid the wrath of an administration as volatile as it is vocal.
'CEOs like two things. They like consistency and predictability,' said Bill George, former chairman and CEO of Medtronic and serial board director. 'They like to know where things are going. No one can figure out where this administration's really going, because everything is transactional.'
'Stay below the radar screen,' George has been advising senior executives across the US. 'Do not get in a fight with this president.'
Industry leaders from David Solomon of Goldman Sachs to Dara Khosrowshahi of Uber extoled the benefits of 'Trump accounts' for babies this week. It was the latest example of knee-flexing that began on the patio of Mar-a-Lago in the aftermath of Trump's victory last November.
The genuflections have been backed by big money, with millions of dollars thrown into the president's inaugural fund by companies and executives. That started to look like chump change before long. Amazon reportedly paid $40m for a documentary about Melania Trump. Apple announced plans to invest $500bn in the US.
But those moves do not appear to have bought much favor. The White House accused Amazon of being 'hostile and political' following a report (upon which the company later poured cold water) that it would start disclosing the impact of Trump's tariffs on prices. And the president threatened Apple with vast tariffs.
No CEO seemed closer to Trump than Elon Musk, the billionaire industrialist behind Tesla and SpaceX, who gave almost $300m to Republican campaigns last year, and worked in the administration for months. Their explosive fallout, days after Musk's exit, prompted the president to threaten the cancellation of federal contracts and tax subsidies for Musk's companies.
The pair's rupture underlined why many executives are struggling to trust the president, according to Paul Argenti, professor of corporate communication at the Tuck School of Business at Dartmouth. 'The mercurial nature of this guy kind of just seeps in, and people start to realize they're dealing with something that's a bit more difficult.'
His advice? 'Proceed with extreme caution.'
'Loyalty only goes one way with Trump,' said Dan Schwerin, co-founder of Evergreen Strategy Group, and former speechwriter for Hillary Clinton, who has previously worked with firms including Levi Strauss and Patagonia. 'This is like doing business with the mafia: you're not going to win, and you're not going to be safe.'
The standard playbook is clear: 'You make a big splashy announcement: the details don't matter, you don't have to follow through, but you placate the White House,' said Schwerin. 'That maybe buys you a little time and a little goodwill.
'But history suggests that Trump will do whatever is best for Trump, and he will turn on you in an instant, if it's better for him. And that is true for his friends, so it will certainly be true for a company that he has no loyalty to.'
Extreme caution has become the name of the game – anything to avoid your company getting drawn into the crosshairs of this administration. But companies can't just focus on the president: they have shareholders, customers and employees to answer to.
'You can't base everything on getting through the next four years,' said George. 'Yeah, it's going to be chaotic. Yes, it's going to be challenging. But you better hold firm to your purpose and your values.'
He pointed to retailer Target, where he served on the board for 12 years. 'They were very, very big on differentiating themselves from Walmart, using diversity as the criteria – and particularly being, they called themselves, the most gay-friendly company in town.
'And then [Target CEO] Brian Cornell, six days after the inauguration, abandoned all that,' said George. The chain faced a backlash – and boycotts – for abruptly announcing the rollback of diversity, equity and inclusion (DEI) initiatives. Breaking his silence in an email to employees three months later, Cornell claimed: 'We are still the Target you know and believe in.'
Contrast this with Costco, another retailer, which in January faced a shareholder proposal against DEI efforts from a conservative thinktank. The firm's board robustly defended its 'commitment to an enterprise rooted in respect and inclusion' before the proposal was put to its investors for a vote.
'They got a 98% vote to stay the course, to stay true to what they were,' said George. 'And their customer base is very conservative. This is not like they have some liberal customer base.'
Argenti believes the period of strategic silence by many companies, and knee-flexing to the White House, might be coming to a close following Musk's messy exit. 'We're at an inflection point,' he said. 'There's going to period where people realize you're damned if you do and damned if you don't.'
CEOs of companies counting the cost of Trump's policies are 'not going to suffer in silence', he said. 'You can't win. It's not like you can be secure in knowing if you follow this strategy, he'll leave you alone.'
'We are starting to see the pendulum swing back,' according to Schwerin, who claimed the administration's erratic execution of tariffs had 'opened some people's eyes' that its policies were bad for business.
'I think it's crucial that we start to see a little more pushback. Better to have a backbone than to just bend the knee.'
On controversial issues at the heart of political discourse, however, George does not expect much of a shift from CEOs. 'It is radio silence, and I think you'll see that continuing. There's not much to be gained from speaking out today.'
'Stick to your lane,' he has been counseling executives. 'If you're a banker, you can talk about the economy. If you're an oil expert ... talk to the energy industry. But you can't speak ex-cathedra to everyone else.'
'Only a handful' of business figures are deemed able to stand up and make bold public statements on any issue, according to George, who points to Jamie Dimon, the veteran JPMorgan Chase boss, and Warren Buffett, the longtime head of Berkshire Hathaway.
'There are certain people who are really hard to take on. Jamie's one,' he said. 'If you were president of the United States, would you take on Warren Buffett?'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ITV News
an hour ago
- ITV News
Israel and Iran launch fresh strikes as conflict enters second week
Israel and Iran launched fresh strikes in the early hours of Saturday morning as the conflict enters its second week. It comes as Iran's top diplomat, Abbas Araghchi, said Tehran would not negotiate while Israel's attacks continue. His comments followed a meeting with foreign ministers from the UK, France and Germany on Friday, which failed to make progress in de-escalating the conflict. 'Iran is ready to consider diplomacy if aggression ceases and the aggressor is held accountable for its committed crimes,' he told reporters. He added that any attack on Iran's peaceful nuclear facilities would be a grave breach of international law, reiterating that Tehran's defensive capabilities are "not negotiable". No date was set for the next round of talks. Following the meeting, US President Donald Trump said Europe can't help in brokering an end to the conflict, adding that it is a "very hard" request to ask Israel to stop. He added: "It's a little bit hard to get somebody to stop," saying, "Israel's doing very well in terms of war, and I think you would say that Iran is doing less well." He said Iran "doesn't want to speak to Europe" and that the country "wants to speak to us". He adds: "Europe is not going to be able to help at this point". Early on Saturday, Iranian missiles were intercepted over Tel Aviv, Jerusalem and Ramallah in the West Bank. An Iranian nuclear site was also targeted by Israel, according to reports from local media. Meanwhile, Israeli Prime Minister Benjamin Netanyahu said Israel's military operation in Iran would continue 'for as long as it takes' to eliminate what he called the existential threat of Iran's nuclear programme and arsenal of ballistic missiles. Israel's top general echoed the warning, saying the Israeli military was ready 'for a prolonged campaign.' However, Iran's underground Fordo uranium enrichment facility is considered to only be reachable by America's 'bunker-buster' bombs. Earlier this week, Trump said he will make a decision on US military action in Iran "within two weeks". The conflict erupted on June 13, with Israeli airstrikes targeting nuclear and military sites, top generals and nuclear scientists. At least 657 people, including 263 civilians, have been killed in Iran and more than 2,000 wounded, according to a Washington-based Iranian human rights group. Iran has retaliated by firing 450 missiles and 1,000 drones at Israel, according to Israeli army estimates. Most have been shot down by Israel's multitiered air defences, but at least 24 people in Israel have been killed and hundreds wounded.
Daily Mail
an hour ago
- Daily Mail
American Express launches bonus points bonanza for EXISTING customers
American Express has launched a bonus points bonanza for existing customers who sign up for its American Express preferred Gold rewards card. A select few existing Gold card members have been offered an exclusive deal of 25,000 bonus points if they rejoin as a Gold card member. Some of the existing members who have been offered the deal include those who have previously held a Gold card and now hold a different American Express credit card. Amex does not usually offer its boosted points deal to existing members, with new card members usually able to scoop up the most points. This is one of a handful of offers it has run in the past. In an email to certain existing American Express customers, it said: 'Welcome offers are not normally available to existing Cardmembers.' The credit card giant said it had 'specially selected' some existing American Express members to receive the exclusive deal of 25,000 bonus points. They must apply through the link in the email they received, and spend £3,000 on the card with three months. The offer can only be claimed until 15 July. Existing American Express members usually only receive boosted points if they refer someone. New Gold card members who have not had a Gold card before can earn up to 35,000 points on joining, depending on how they join, as American Express has relaunched its 'invite a friend' offer. If a new customer takes out a Gold card through a referral link, they can get 35,000 bonus points if they spend £3,000 within the first three months of having the card. The existing Amex customer who referred the friend will get an extra 18,000 once the person they referred has been approved for a card. This offer also runs until 15 July. New customers signing up for a Gold card through the website can get a boosted points offer of 20,000 if they spend £3,000 within the first three months of being a gold card member. You will receive the 20,000 bonus points if you have not held a personal American Express card in the previous 24 months. What does the Gold card offer and should you get it? The annual fee for an Amex Gold card is a hefty £195, but this is waived in the first year of having the card. This means you are getting the benefits that come with the card for free for a year. You can cancel before the £195 annual fee kicks in and there is no obligation to keep the card beyond the first year. Gold card members receive four airport lounge passes each year, They also get £120 in Deliveroo credits a year, and enhanced points-earning opportunities including 2x points for every £1 spent directly with airlines or in a foreign currency. Membership Rewards points can also be converted one-for-one into Avios meaning you can get 20,000 Avois points with the bonus deal. Those who fail to pay their balance off each month will be hit with a 31 per cent purchase rate. The representative APR is 88.3 per cent, including the annual fee. It makes it crucial to pay off as you go along, or you wipe out any potential benefits - and could end up with a hefty interest bill. Burgess said: 'This package is an exceptionally generous deal for a card which is free for the first year.'
Times
an hour ago
- Times
Mahmoud Khalil, pro-Palestinian activist, released after 104 days
Mahmoud Khalil, the Palestinian activist detained by the Trump administration over his ties to student protests, has been released from immigration detention after 104 days. The former Columbia University student became a symbol of the president's clampdown on campus demonstrations when he was arrested and threatened with deportation. On Friday a federal judge ruled Khalil, a green card holder married to an American, must be released on bail. He walked free from a detention centre in Louisiana and said he wanted to hug his wife and newborn son. 'Justice prevailed, but it's very long overdue,' Khalil said while wearing a keffiyeh, a black and white headscarf which has become a symbol of solidarity with Palestine. 'This shouldn't have taken three months.' He is expected to travel to New York to reunite with his family. Khalil was detained outside his apartment in New York in March over his ties to the student protests and encampments at Columbia that later spread to colleges across the nation. Marco Rubio, the secretary of state, claimed that he should be deported and that his participation in 'antisemitic protests' posed a national security threat. Khalil and his supporters maintain he is innocent and that he took part in legitimate protests. He missed the birth of his son while detained. District Judge Michael Farbiarz said it would be 'highly, highly unusual' for the government to continue detaining a legal US resident who was not a flight risk and who had not been accused of violence. 'Petitioner is not a flight risk, and the evidence presented is that he is not a danger to the community,' he said. 'Period, full stop.' After leaving detention Khalil condemned the White House's immigration policies. 'The Trump administration are doing their best to dehumanise everyone here,' he said of the immigrants still behind bars. 'Whether you are a US citizen, an immigrant or just a person on this land, doesn't mean that you are less of a human.' Under the terms of his release Khalil had to surrender his passport and cannot travel internationally. He can however travel within the country including to New York and Michigan to visit family, New Jersey and Louisiana for court appearances and Washington to lobby Congress.
