As the 2024 U.S. election looms, the implications for Washington and the global economy have become increasingly clear. Amid this political backdrop, U.S. Federal Reserve Chair has issued a stark warning regarding the impacts of tariffs, indicating that such measures lead to higher prices, increased unemployment, and a widening economic disparity, all while stymying productivity and growth.

In a strongly worded statement, a collective of CEOs from public companies have voiced their dissent against the current trade policies, pledging to challenge them with all their resources. They assert their unity and determination to confront these issues head-on, highlighting their significant influence over the economy. This group collectively oversees two-thirds of the public equity markets, generating an astonishing $25 trillion in annual revenues and employing around 35 million individuals. Furthermore, they contributed over $1 trillion in global taxes last year.

Interestingly, this bold declaration was notably absent from major financial publications, including the Financial Times. In an era where corporate leaders are expected to take a stand on pressing issues, their silence in the face of what many deem 'Donald Trumps tariff chaos' represents a critical failure of leadership. Observers are left asking: where are the voices of those at the helm of major corporations during these turbulent times? Instead of leading, it appears many are retreating to the background.

Reports suggest that while some executives have expressed their concerns in private discussions, others maintain that engaging with governmental officials behind closed doors is a more prudent strategy. However, the effectiveness of this approach is under scrutiny, especially as shareholders have already witnessed trillions of dollars in losses due to these policies. It begs the question: is avoiding public confrontation in favor of diplomatic conversations truly worth it when the stakes are so high?

Although a few CEOs, like Jamie Dimon of JPMorgan, have publicly acknowledged the challenges brought by this uncertain environment, others seem hesitant to take a stand. The CEO of Delta Air Lines described the situation as self-inflicted, suggesting that the repercussions of the tariffs are entirely avoidable. Moreover, AstraZeneca's chair has warned about potential negative impacts on healthcare equity, illustrating just how far-reaching these tariffs could be.

The situation raises a significant irony. Many of these high-level executives have undergone rigorous training in leadership, with nearly 40% of S&P 500 CEOs holding an MBA. Corporate offices are filled with leadership coaches who encourage them to walk the talk and embody strong leadership qualities. Yet, in this critical moment, it appears that many CEOs have failed to exhibit the courage that is expected of them.

Worldwide, there are approximately 160 specialized management programs focusing on leadership, with thousands of students enrolling each year. Despite an abundance of resources and literature, including over 30,000 leadership books available on Amazon, the current crop of global CEOs seems to be lacking in decisive action when it matters most.

As the stakes rise, one must wonder why these corporate leaders have hesitated to lead when their stakeholdersemployees, consumers, and shareholders alikeare directly impacted by the potential implementation of tariffs. The legality of tariffs, which are enacted through executive authority, has been a point of contention. Unlike other policies, tariffs lack a robust system of checks and balances. Once imposed, Congress cannot easily reverse them, nor does the administration need to justify their economic ramifications.

However, theres an opportunity for CEOs to exert influence over Congress to reclaim some power regarding tariff implementation. They currently invest approximately $4.5 billion annually in federal lobbying efforts, which positions them uniquely to advocate for changes in tariff policy. Suggestions from think tanks such as the Brookings Institution include tightening the criteria for imposing tariffs, introducing mandatory reporting, and enhancing judicial oversight.

While a mere dozen CEOs calling for these changes may not suffice, a unified stance from hundreds or thousands of corporate leaders would certainly be hard to ignore. It is crucial for chairs and boards to step up and take responsibility in these challenging times. The decades of relative peace and economic stability have led to a rise in technocrats and financial experts at the helm of many organizations. However, many of these individuals may grapple with an imposter syndrome that hinders their capacity for decisive action. The time has come for visionary leadersthose who prioritize justice and equity over mere operational efficiencyto emerge.

The current lack of response from high-profile CEOs regarding tariffs raises serious questions about their ability to lead effectively. Some might argue that their positions should be reconsidered, especially in light of the pressing need for leadership during such critical times.