Corporate America rolled out the red carpet for Donald Trump’s administration, giving millions to his inauguration. As his policies come to fruition, many businesses are finding themselves in choppy waters and rough skies – especially in the controversial automotive and airline bailouts. Executives have been consistently clear that Trump’s tariff policies are hurting their businesses and that they pose significant risks to the overall economy.
Trump’s tariff regime a “chaos,” according to Ford CEO Jim Farley. He admitted that erratic tariff messaging on autos has made it tough for component manufacturers to navigate this dangerous landscape. “Most auto suppliers are not capitalized for an abrupt tariff-induced disruption,” said six of the top policy groups representing the U.S. automotive industry. “Many are already in distress and will face production stoppages, layoffs, and bankruptcy.”
Delta Air Lines’ CEO Ed Bastian attacked Trump’s tariff strategy, calling it “the wrong approach.” He said the overall uncertainty created by the current trade policies has depressed bookings, forcing Delta to withdraw its earnings forecast for 2025. This represents a growing concern among the business community over the economic uncertainty created as Trump’s dangerous trade war rages on.
Trump’s proposed pharmaceutical tariffs have left drug manufacturers on edge, bracing for significant impacts that could affect their operations and pricing strategies. Meanwhile, his administration has initiated a sweeping overhaul of federal health agencies under the leadership of a prominent vaccine skeptic, which further complicates the landscape for healthcare providers and pharmaceutical companies.
Despite these hurdles, Trump is doubling down on preventing skyrocketing health care costs. His economic policies have done much to raise the specter of tariffs, raising the alarm from economists both liberal and conservative at what could happen if they continue. A large group of experienced observers agree that these measures would bring new burdens on consumers and drive the economy into a likely recession.
Worries about an impending recession have grown in recent months as uncertainty created by Donald Trump’s trade wars have weighed down the mood of corporate chieftains. Historically, the KBW Bank Index has just tanked into bear market territory. Yet it has plummeted 20% from its post-election peaks due to increasing concerns over his coming aggressive tariffs. This decline is part of larger concerns with regard to consumers being more cautious and spending less.
In fact, the Trump administration has been laying the groundwork to enact separate tariffs on specific products, like phones, computers, and chips. This strategy has created further chaos in the business community as well, piling on difficulties for industries that had once been on his side.
The automotive sector, which contributed approximately $5.3 million to Trump’s inauguration, now finds itself navigating a climate of unpredictability. From warehouse operations to fleet management, executives are doubting the viability of their business models amid today’s tariff landscape. GE Aerospace CEO Larry Culp expressed hope that the administration would reconsider its approach: “We have suggested that they can consider the position of strength that the country enjoys as a result of this tariff-free regime and to consider reestablishing the same.”
Beyond economic policies, worth noting, the Trump administration’s war on diversity, equity, and inclusion (DEI) mandates. Their goal is to eliminate these programs from all federal agencies. This sudden turn has caught a lot of the very corporations that funded his first committee off-guard, including Target, McDonald’s, and Delta Air Lines. Having skipped previous election cycles, their engagement now is particularly noteworthy.
Goldman Sachs CEO David Solomon remarked on the disconnect between business expectations and current policy directions. “There are certain things that have been put forward from a policy perspective that don’t feel in line with the expectation people had.”