The business community is mired in a "culture of fear" as it wants to oppose President Donald Trump's new round of tariffs but fears reprisal from the U.S. government, Politico reported on Friday.
Trump's so-called "Liberation Day" tariffs target practically every country's goods with new import duties ranging from 10 to 49 percent, and for some reason even explicitly include some uninhabited Antarctic volcano islands with no trade or industry.
The stock market has reacted with its worst two-day drop since the COVID-19 pandemic in 2020. But conspicuously, few businesses have put out any statements in opposition — and there's a stark reason for that, per the report.
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The inability of the business world to speak out "reflects the broader mood of Trump’s second administration, in which he’s targeted and threatened to destroy institutions that cross him, including law firms, universities, and more. With his tight grip on Washington, Trump has faced no meaningful resistance to policies that are upending the global economy, tearing up America’s relationships with its closest allies and making deep, unilateral cuts to the federal government," reported Caitlin Oprysko. "Leaders have quickly learned that however harmful they think a Trump policy might be, publicly contradicting the president could be worse."
One trade group executive bluntly said, “There is absolutely a sense that the administration is keeping a list, and no one on K Street wants to be on it.” Meanwhile, a Republican lobbyist said, “What’s the Japanese proverb? The nail sticking up gets hammered down. On K Street, there’s no value in being the nail sticking up right now.”
This doesn't necessarily mean the Trump administration will face no resistance at all from the business world.
“They’re gonna be sued off their a---- for this as soon as it happens,” said one person close to Trump's inner circle, “by trade associations, companies, industry groups.”
Thus far, no trade groups have sued to stop Trump's tariffs, although a right-wing public-interest law firm usually known for its attacks on the administrative state is representing a Florida manufacturer in a lawsuit to overturn Trump's emergency tariff powers.
