Top CEOs are flocking to Trump again in bid to shape agenda
Eyeing the chance of presidential victory for Donald Trump, big names from the world of finance are lining up behind him.
When Donald Trump won the presidency in 2016, business leaders flocked to meet with him, hoping to tone down his trade policies and populist rhetoric while encouraging his business-friendly tax and deregulation agenda.
They are flocking to meet him again. Since Trump vanquished his last major GOP primary foe, more big names from the world of finance have lined up behind him. This week, a range of chief executives listened carefully as he promised more tax cuts and hedged some of his harshest promises on immigration.
The executives say their willingness to listen to Trump stems from frustration with President Joe Biden, a growing realisation that Trump could win and a desire to shape the Republican’s agenda before the election – rather than scrambling to do so after. Many who distanced themselves from Trump following the Jan. 6, 2021, riot at the Capitol by the former president’s supporters have softened their criticisms.
Even CEOs such as JPMorgan Chase’s Jamie Dimon and Bank of America’s Brian Moynihan, who historically avoid making endorsements, have shown signs of warming to Trump’s policies or spoken out about Biden’s.
Dimon, Moynihan, Citi CEO Jane Fraser and Wells Fargo’s Charlie Scharf were all in attendance at the Business Roundtable meeting on Thursday where Trump addressed the group. Trump told them that as president, he would be better than Biden on taxes and the economy. He said the corporate tax rate should be at 20 per cent, at one point positing it could go as low as 15 per cent, his campaign’s original target, according to a person who was there.
Dimon surprised his peers at the World Economic Forum in Davos, Switzerland, early in the year when he said in a television appearance that Trump was “kind of right” on some things, such as trade and immigration.
Moynihan, more understated than Dimon, has criticised Biden’s policies as bad for business, based on conversations with the bank’s clients. He has told people that bank clients, many in the middle of the country, are complaining about Biden’s policies, specifically about permitting for energy projects and dealmaking.
Trump is happy to tell business leaders mostly what they want to hear. Besides more tax cuts, he has said he would be friendly to artificial intelligence and light on regulation, in particular for dealmaking. The Federal Trade Commission during the Biden administration has been among the most aggressive in recent years trying to block mergers and rein in giant companies.
But Trump’s policies in areas such as immigration and statements he has made that question the rule of law make businesses wary. On Thursday, he floated to House Republicans the idea – lacking in details – of an all-tariff federal revenue system, large enough to replace the income tax.
He told business leaders that he favoured changes to the immigration system and wants educated foreigners and foreign-born college students in the US to be given the chance to stay in the country. He said he didn’t want the US to leave the North Atlantic Treaty Organization but that every member nation should pay their fair share. Nations who are members of the alliance pledge to spend 2 per cent of their gross domestic product on defence.
Despite some CEO grumbling, businesses have thrived under Biden. Stocks are near records, corporate profits are up, inflation has come down and the economy has so far managed a soft landing despite aggressive interest-rate increases from the Federal Reserve. Industries such energy that appeared to be at risk from Biden’s policies have done well.
Much of corporate America had been dreading a Biden-Trump rematch. For months, deep-pocketed financiers cast about for alternatives to the two men. Their favoured candidates included Nikki Haley. Some even floated longshot candidacies such as Secretary of Commerce Gina Raimondo, who they said spoke their language given her business background. (Hedge funder-turned-social crusader Bill Ackman unsuccessfully urged Dimon himself to run for president.)
Trump’s team was nervous that the CEOs might not be too welcoming, in part because of the former president’s recent conviction in his hush-money trial, according to a person familiar with the matter. But many of those who don’t like Trump or some of the things he has done or said appeared to be willing to give Trump a second look, the person said.
The Trump campaign disputed the characterisation that his team was nervous, saying that Trump, as a businessman himself, was comfortable in the setting. “President Trump was warmly received by everyone in the room and was commended for his policy proposals on deregulation and tax cuts,” said spokesman Steven Cheung.
Many executives say a Trump second term could be more palatable with the right vice president by his side. South Carolina Sen. Tim Scott, Florida Sen. Marco Rubio, Ohio Sen. J.D. Vance and other potential vice-presidential picks have been popular with finance types. North Dakota Gov. Doug Burgum, a successful businessman and former presidential candidate, is also in the VP mix. Vance, a former venture capitalist who was backed by Republican donor Peter Thiel, has made the rounds recently in Silicon Valley.
Some executives may have their own careers in mind. Hedge-fund manager John Paulson and investor Scott Bessent are among those whose names have been floated for Treasury secretary, The Wall Street Journal has reported.
The meeting attracted some of the nation’s top business executives, including Apple CEO Tim Cook and Walmart CEO Doug McMillon, according to some of the people. The Biden administration has consulted McMillon on a range of topics such as inflation and supply-chain issues, according to people familiar with the matter.
Trump had some backers among Silicon Valley’s leaders when he ran before. This time the group appears to be more widespread and more vocal. For many, their support springs more from frustration with the business climate from the Biden presidency rather than a raging enthusiasm for another Trump term.
Among the most visible is Elon Musk, the CEO of Tesla and owner of X, who has privately been speaking with Trump and other backers of the former president, the Journal has reported. The two have discussed a possible advisory role for Musk should Trump reclaim the White House. On June 5, Musk tweeted: “The SF Bay Area is shifting towards Trump.”
Trump has increasingly won back holdouts who hadn’t until recently contributed to his campaign, including Miriam Adelson, a longtime GOP donor with her late husband Sheldon, who plans to support a pro-Trump super PAC.
Donors from the financial sector have given more than $US56 million ($85m) to Trump’s campaign and outside groups, according to data compiled by the Center for Responsive Politics. Those donors, who come from banks, investment firms and insurance companies, gave about $US40 million to Biden’s campaign and related fundraising arms.
– Dow Jones Newswires
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