CEOs Choose Their Words Carefully to Avoid Political Backlash Over Tariffs

Executives are carefully choosing their words. They avoid being too direct and refrain from mentioning the president by name.

For many CEOs, public communication has become a delicate balancing act, where a single misstep could provoke the administration's displeasure.

As the impact of tariffs, notably the 30 percent duty on Chinese imports, begins to affect companies, they are obliged to inform investors about how these increased costs will be managed—often by raising prices.

However, the president insists that other countries shoulder the burden of these tariffs and resists any suggestion that businesses are passing costs onto consumers. This stance has led executives to adopt an even more cautious tone during routine quarterly earnings calls.

Since the start of the administration, corporate leaders have been mindful of the president's tendency to use social media to single out businesses and executives perceived as opposing his policies.

The president's second term has intensified this environment, with companies like Mattel, Ford, Amazon, and Apple’s CEO having recently faced public criticism.

Brett Bruen, president of Washington-based consulting firm Global Situation Room, emphasizes that companies must recognize how deeply politics now intertwines with business and incorporate this awareness into CEO preparations.