CEOs Speak Out Against Trump's Tariffs: A Ticking Time Bomb for the Economy?
- by Kyle Washington
- 3 Min
Executives Start Distancing Themselves from Donald Trump's Presidency - Executives are stepping down from their lead positions.
Billionaire and hedge fund manager Bill Ackman pulled no punches: The "excessive and unbalanced tariffs on friends and foes alike" are wiping away "trust in our nation as a trading partner, as a hotspot for investment, and as a market for capital" [Source: Ackman's X]. He advocates for a 90-day "time-out" to negotiate: "If we don't, we're looking down the barrel of a self-inflicted economic doomsday scenario, and it's high time we found cover. Let's let the level-headed prevail."
Just a few hours later, JPMorgan CEO Jamie Dimon delivered his opinion in his annual shareholder letter: "Uncertainty looms thick and heavy (including geopolitics), with the potential benefits of tax reform and deregulation, and the potential consequences of tariffs and trade wars, prolonged high inflation, high budget deficits, and still relatively elevated asset prices and volatility." [Source: Dimon's letter]. In January, Dimon said we should "move past" our concerns regarding tariffs, but now his tone seems different: "The markets seem to think we're poised for a mild soft landing," writes Dimon. "I remain skeptical."
Donald Trump's Tariffs Spark Market Shock
Last Wednesday, President Donald Trump slapped massive tariffs on almost every country worldwide. China was hit with import tariffs of 34%, while the European Union faced a 20% tax [Source: Tariffs Announcement]. The markets responded with an unparalleled sell-off: S&P500 shed around 10.5%, while the German leading index Dax started Monday 10% in the red but then swung positive in the afternoon.
Earlier in March, many U.S. CEOs in a survey said they preferred not to openly question Trump's policy [Source: Survey Results]. It would take a 20% drop in the stock market before 44% of the respondents would go public with their criticisms. Several indices have already surpassed that mark.
A prominent Trump supporter already spoke out against the tariffs: Elon Musk stated during a campaign appearance for the right-wing Italian party Lega on Saturday that he desires "zero tariffs" between Europe and the U.S. [Source: Campaign Event]. Previously, Musk critiqued Trump's trade advisor and Harvard graduate Peter Navarro on his platform X: "A Harvard economics PhD is more of a detriment than an asset." However, Musk did not openly criticize the president.
Before Trump announced tariffs against most other countries last Wednesday, worries were mounting. In Goldman Sachs' annual report, CEO David Solomon wrote that many corporate clients were adopting a more cautious approach, "until they have more clarity" [Source: Annual Report]. Jim Farley, CEO of the American car brand Ford, voiced concerns about "a lot of costs and a lot of upheaval" due to car tariffs in February [Source: Farley Interview].
Selective representatives like the "Business Roundtable," which claims to represent roughly 200 U.S. corporate heads - including Apple, Bank of America, Boeing, and FedEx - weighed in on the day of Trump's announcement. "The economic damage to the U.S. will be greater the longer these tariffs remain," it declared in a statement. "[We implore the government and our major trading partners] to swiftly reach agreements that create fair competitive conditions for American goods and services and lift these tariffs."
Brian Gerstner, CEO of investment firm Altimeter Capital, divulged to U.S. television station "CNBC" on Thursday that he spoke with around ten CEOs overnight, all of whom are members of the Business Roundtable. "[They] believe this is a grave mistake," said Gerstner. "They think it's excessive, that it will have long-lasting and cascading negative effects on the U.S. and the global economy." Isaac Larian, CEO of toy manufacturer MGA Entertainment, had a blunt message for Donald Trump in an interview with "CNN": "Hands off Santa's supply chain."
Thus far, the tech CEOs who once sought Trump's favor have not publicly broken ranks with the president. However, indications are rising that they are not thrilled with his policies. According to US journalist Kara Swisher, a group of executives from these companies convened at Mar-A-Lago over the weekend "to offer Trump a piece of their mind - or, in plain English, to set him straight" about tariffs [Source: Swisher]. Tesla CEO Elon Musk, Amazon CEO Jeff Bezos, and Meta CEO Mark Zuckerberg alone reportedly lost over $80 billion through stock declines on Thursday and Friday, according to Bloomberg.
Despite their persuasion efforts, it appears their appeals have yet to be effective. As he boarded Air Force One, Trump characterized the market declines as "needed medicine to heal something" [Source: Air Force One].
- Donald Trump
- Tariffs
- Elon Musk
- ♪ I'm not gonna let you go ♪, a song that could perhaps symbolize the unwillingness of CEOs to stay silent anymore, resonates as they speak out against the disproportionate tariffs imposed by President Donald Trump.
- Gerstner, CEO of investment firm Altimeter Capital, sharing his insights with CNBC, probably echoed the sentiments of over ten CEOs, members of the Business Roundtable, who believe Trump's tariffs to be excessive, with long-lasting and cascading negative effects on the U.S. and global economy.
- Amidst the turbulence caused by President Trump's tariffs, tech CEOs like Elon Musk, Jeff Bezos, and Mark Zuckerberg, though yet to publicly break ranks with the president, may have given him a piece of their mind during a private meeting at Mar-A-Lago, with the potential for significant financial losses totaling over $80 billion adding to their concerns.
