Trump’s Playbook: How the CEO-in-Chief Is Shaping Big Business to His Advantage

Some experts suggest that the way Trump intervenes in corporate affairs is quite novel for American politics. Ryan Bourne from the Cato Institute notes that while Trump did use his influence during his first term, his recent actions are more intrusive. He’s not just making general comments; he’s making specific deals with companies that benefit the government directly.

“In the U.S., this is unprecedented,” Bourne says. “It’s not really free markets anymore; it’s fee markets.”

Despite concerns, the stock market has thrived. The S&P 500 keeps reaching new highs, bouncing back from dips, including a drop after Trump’s initial tariff announcements.

Interestingly, even some of Trump’s critics recognize his strategy’s effectiveness. A progressive strategist remarked, “He demonstrates the power of the presidency, often through just tweets.” This reminds us of how past presidents, like FDR and Teddy Roosevelt, used their platforms.

Trump’s interventions have accelerated recently. For instance, he announced a deal with Nvidia, calling for a share of their profits from sales to China to go to the U.S. government. “I only care about the country,” he claimed.

While Nvidia and AMD haven’t confirmed this arrangement, they did express hopes of growing their sales to China. Additionally, Trump secured a “Golden Share” for the U.S. in a merger between U.S. Steel and Nippon Steel.

Media giants like Disney and Paramount seem to be adjusting their strategies to align with Trump. For example, Disney settled a lawsuit with Trump right before he took office. Similarly, Paramount paid to resolve a separate lawsuit just before a merger approval.

Trump is also known to make direct threats against company leaders. Recently, he called for the removal of Intel’s CEO, leading to a quick White House visit to discuss his future. Just as quickly, he praised him afterward.

Even major brands like Apple have felt his influence. After threatening tariffs, Apple’s CEO visited Trump to promise significant investments in the U.S., enhancing their relationship.

Despite some Republican pushback, most lawmakers seem reluctant to challenge Trump’s methods, especially with midterms approaching. This has led companies to strategically comply rather than resist.

Experts caution that while this might preserve short-term profits, it could harm the business landscape in the long run. Bourne highlighted the risk of companies focusing more on political relationships than on value creation.

Jeffrey Gordon, a law professor, echoed this concern. With ambiguous legal boundaries surrounding Trump’s authority, companies often find it easier to acquiesce than to challenge him, fearing lengthy legal battles.

In summary, Trump’s approach to business seems to be reshaping corporate strategies, balancing immediate gains against potential long-term consequences. It’s a dynamic worth watching as it develops.



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