Some CEOs of major Fortune 500 companies are now reportedly going out of their way to avoid saying anything publicly that could be construed as political, lest they end up in President Donald Trump's crosshairs.
That's according to a Wednesday article in the New York Times, which reported that corporate executives have been on increasingly high alert when speaking to shareholders about Trump's tariffs. While the previous 145% tariff on China has since been temporarily lowered to 30%, CEOs are still apparently anxious to say out loud that they plan on raising prices to account for the loss in profits.
"Companies have got to reconcile with the fact that politics has penetrated nearly every element of their business and to bake those considerations in to prepare your CEOs," corporate consultant Brett Bruen told the Times.
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For retailers who depend on Chinese imports for a significant portion of their inventory, like Walmart, the added costs from tariffs have become an especially sensitive topic. Walmart CEO Doug McDillon recently told investors on an earnings call that while he was grateful for a lower import tax of 30%, his company would still likely have to raise prices on its goods to make up for the higher trade duties. But Trump blasted McDillon in a post to his Truth Social account, ominously warning that he would be "watching" Walmart closely to make sure it would "EAT THE TARIFFS" instead of pass the cost to consumers.
"Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain," Trump wrote. "Walmart made BILLIONS OF DOLLARS last year, far more than expected. Between Walmart and China they should, as is said, 'EAT THE TARIFFS,' and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!"
David Swartz, who is a senior equity analyst at the Chicago-based firm Morningstar, told the Times that he expects CEOs to be especially cagey with investors on future earnings calls to avoid getting on the president's bad side.
“Are they afraid of Trump? The answer is yes,” Swartz said. “Nobody wants to be on his radar, and the relatively minor things that Walmart and Mattel said — which are obvious — he gets mad at them essentially for saying the truth about something that he caused.”
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Click here to read the Times' report in its entirety.