Corporate America is finding itself in a strange new relationship with a president who isn’t afraid to use bully tweets against companies that garner his displeasure.
Witness what happened to Nordstrom, which was the target of President Donald Trump’s ire when the upscale retailer announced it was discontinuing his daughter Ivanka’s apparel line. Trump lambasted the decision as “Terrible!” and tweeted, “My daughter Ivanka has been treated so unfairly by @Nordstrom.”
This week New Jersey-based discount retailer Burlington Coat Factory also reportedly removed Ivanka Trump’s merchandise from the company’s website, according to racked.com.
Even before taking the oath of office, Trump caused considerable corporate agita when he signaled out Lockheed Martin and Boeing in separate tweets about the costs of the F-35 fighter jet program and a new Air Force One replacement plane, respectively.
If there is one thing that companies are extremely mindful of, it is image and how it can affect the bottom line.
So, when Trump uses his tweet pronouncement as a sort of corporate bludgeon to cajole companies, they pay attention.
Burlington Coat Factory to drop Ivanka Trump items
Ford and General Motors were both targets of Trumps displeasure for shifting jobs to Mexico. Ford even canceled plans to build a $1.6 billion plant in Mexico, but insisted it did so for business reasons and not because of Trump’s scrutiny. But one has to wonder about the timing of Ford’s decision.
Such a populist strategy certainly has struck a positive cord with many blue-collar workers who have seen their jobs migrate to other countries as big American corporations fatten profits.
What is strange here is that an extremely wealthy businessman who now has the power of the presidency at his disposal is proclaiming himself to be the champion of the underdog worker. He is the one with the business acumen who knows how to fight the fat cats because he is one of them.
Instead of “doing the deal” for the Trump organization, he’s now doing it for the American people.
With Trump’s administration in its infancy, we are still waiting to see how much of a workers’ champion he will be.
But the business world is starting to take note that Trump’s bluster only goes so far.
Nordstrom’s stock dipped a bit after Trump’s tweet, but bounced back to close up more than 4 percent. Boeing and Lockheed Martin experienced similar minor stock setbacks following Trump’s negative remarks.
Indeed, some of corporate America’s giants are taking the unusual step of loudly denouncing Trump’s order banning people from seven predominantly Muslim countries from entering the United States.
Among them are Amazon, Microsoft, Goldman Sachs, Google and Starbucks.
Trump has managed to poke a stick into corporate American. But it appears its sting has not been long lasting.
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