Trump's corporate pressure campaign
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Illustration: Maura Kearns/Axios
Since taking office roughly a year ago, President Trump has increasingly inserted himself into the inner workings of American businesses.
Why it matters: Corporate America is well-versed in managing pressure from NGOs, activist investors and the media. What's new is the need to respond in real time to the whims of a single political figure with an enormous megaphone.
Catch up quick: Trump has called for the resignation of tech executives, inserted himself in media mergers, pressured companies over business strategies, demanded a cut of sales from certain companies and even moved to derail a corporate rebrand.
State of play: This time a year ago, many corporate affairs teams would've been caught flat-footed.
- Now, teams are moving faster, stomachs have gotten stronger and playbooks have been drafted for the possible moment a company or brand lands in Trump's crosshairs.
Between the lines: Trump's bombast appears to be a way to force companies to the dealmaking table.
- "The strategy is to engage corporations to more actively ensure that they are collaborating with the federal government to advance the interests of the U.S.," FGS Global CEO Alexander Geiser said.
- "We see that as an opportunity and have found that companies that engage directly and strategically with this administration can achieve tremendous outcomes."
Zoom in: These flashpoint moments can also be used to seize control of the narrative.
- For example, after Trump demanded that Intel CEO Lip-Bu Tan should resign due to his alleged Chinese business links, the company took advantage of the spotlight to swiftly — and publicly — correct the record.
- Then, Tan met directly with the administration to clear the air and educate it on shared interests.
- Days later, the U.S. government announced it would take a 10% equity stake in the chipmaker.
What to watch: As the midterms approach, the affordability debate is expected to be at the forefront.
- Trump can either continue to blame the "Biden economy" or he could increasingly turn his fire on corporate America, accusing companies of driving higher prices and stagnant wages.
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