Dear Friends,

Over the weekend, former President Trump took to Truth Social to demand that Walmart “EAT THE TARIFFS.” It’s not the first time he’s singled out a major American company—and it won’t be the last. Apple, Boeing, Mattel: all have been targets of similar attacks.

But this post wasn’t just a threat. It was a confession.

By telling Walmart to absorb the cost of tariffs, Trump admitted what any economist could have told you from the beginning: the idea that foreign countries were paying the tariffs was fiction. American businesses—and ultimately American consumers—are footing the bill. That lie now creates an impossible situation for CEOs: meet economically unworkable demands, or face politically motivated retaliation.

And now, we’re seeing exactly how far he’s willing to go. This morning, the Trump campaign announced plans to impose new tariffs on Apple—just minutes after I predicted it would happen in my Bloomberg column. This isn’t theoretical. It’s happening in real time.

These are not real policy proposals. They are coercive pressure tactics. And when the White House uses its power to intimidate companies—through executive orders, contract cancellations, or threats of selective tariffs—CEOs are left with no good options. Alone, they will lose.

Historically, when business leaders act in unison, they are among the most powerful forces in American politics. In the mid-20th century, corporate leaders helped shape everything from the interstate highway system to civil rights legislation. Their collective voice mattered—because they used it.

The ability to apply coordinated, credible pressure exists. What’s missing today is the will—and the coordination.

Every time a company caves, or goes silent, or tries to go it alone, the collective power of American business weakens. CEOs may think they can stay out of the fray. But when the next demand comes—unreasonable, unaffordable, or unconstitutional—they’ll wish they’d acted when they still had leverage.

What happens to the balance of power when the presidency can target companies by name—and no one pushes back?

—Gautam

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Further Reading….

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