As the American political landscape gears up for the 2024 election, a notable shift in tone has emerged from the nations billionaires. Following a tumultuous week in financial markets, many of these high-profile business leaders have broken their silence regarding President Donald Trumps controversial policies, particularly his sweeping tariffs. In an unprecedented move, they characterized the tariffs as a "huge policy mistake," labeling them as acts of "stupidity" that could potentially trigger an "economic nuclear winter." Some even went so far as to dismiss the policies as "bullshit."

This shift marks a significant departure from the typically cautious approach that corporate America has taken towards Trumps administration. Before this moment, many companies seemed to exhibit a remarkable level of deference to his political agenda. Whether this new open criticism will provoke a long-term change in corporate behavior remains to be seen, especially in light of Trump's recent retreat from the tariffs.

The environment for businesses navigating these political waters is rife with confusion. In a recent conversation with Nneka Chiazor, the head of the Public Affairs Council in Washingtona nonpartisan association representing public affairs professionals from some of the largest corporations in the U.S.she recounted her experiences during a meeting in Brussels. There, many members expressed uncertainty about how to communicate under the current administration. Questions arose such as, "Can we still say 'green'?" or "Is 'clean' still acceptable?" and "Would it be permissible to participate in [New York] Climate Week?" This reflects an ongoing struggle for companies to balance respect for the current administration while also fulfilling commitments to their customers and other stakeholders.

This balancing act becomes even more complicated when considering the backlash that can arise from retracting previously embraced policies. According to New York University professor Alison Taylor, author of Higher Ground: How Business Can Do the Right Thing in a Turbulent World, businesses that appear to flip-flop on their commitments risk coming off as "hypocritical and directionless." This perception can undermine their credibility, making any statements they release appear implausiblea situation she argues is not a smart strategy for any company aiming to maintain trust.

Financial risk is another pressing concern for these businesses. For instance, Target has experienced a decline in customer visits for nine consecutive weeks, a trend linked to a boycott triggered by a January announcement that the retailer would be scaling back its diversity initiatives. Data from the analytics firm Placer.ai supports this, indicating that as foot traffic dwindled, Costco, which opposed a shareholder proposal that aimed to weaken its diversity and inclusion programs, has continued to see growth in store visits.

Though correlation does not imply causation, various external factors could also be at play in these contrasting scenarios. Trust and likability scores, which serve as key indicators of a company's reputation, have reportedly dropped for Target, falling to a four-year low in the first quarter of this year. Market intelligence firm Caliber also noted that this downturn was part of a broader trend that began well before Targets decision to pivot on diversity initiatives.

Employee trust is another critical dimension that cannot be overlooked. Numerous associates from prestigious law firms have signed an open letter condemning the administration's actions against firms that oppose it. The discontent among these employees was palpable when their firms unexpectedly pledged millions in pro bono services to causes favored by the administrationan action that even caught Trump off guard. "Where do I sign? Where do I sign?" the president remarked with a hint of disbelief during a meeting at the White House last month.

Historically, corporations have not often led the charge in political resistance, even in times of significant stakes. Dutch journalist David de Jong, in his extensive research for the 2022 book Nazi Billionaires, found only two notable examples of major industries opposing Nazi Germany: Robert Bosch, founder of the Bosch Group, and steel magnate Fritz Thyssen. Additionally, Charles Hecker's 2024 book Zero Sum illustrates how foreign companies remained entrenched in a progressively authoritarian Russia, with executives keen to boost sales even amidst political turmoil.

While it can be argued that the U.S. of 2025 is not directly comparable to Russia in 2014 or Germany in the 1930s, the ongoing tension between American corporations and a government intent on consolidating power is a familiar narrative. As we approach the 2024 election, businesses will need to navigate these complexities with care, balancing their commitments to stakeholders against the shifting tides of political sentiment.

Contact: pilita.clark@ft.com