Trump and global business
When Donald Trump's name came up as a possible candidate for President of the United States, many businessmen both in the US and abroad were skeptical. It seemed a remote possibility for a non-politician; if elected, a neophyte in government; and a businessman with a troubling track record in business to make it to the White House. But if he did many businessmen were assured that the next US President would be accommodating to business interests and given his worldwide business interests supportive of global trade and partnerships.
As Donald Trump became prominent in the primaries with bombastic tirades that appealed to Middle America and championing isolationist, discriminatory and xenophobic advocacies, businessmen believed he had no chance against Hilary Clinton. Just like many mainstream Republican leaders, they distanced themselves from his campaign. By the grace of the peculiar electoral vote process and the machinations of the FBI director, Donald Trump won in the electoral college but lost the popular vote by around two million votes.
Still many American businessmen and foreign executives hoped that President Trump will be different from Candidate Trump. Used to the normal course of events where presidents gravitated to the center in order to have an inclusive and unified nation, they expected Trump to do likewise. His inauguration address seemed to promise a more civil and unifying posture. Regretfully it would not be so.
Firing off a series of Executive Orders that overturned Obama's initiatives on healthcare, immigration, environment and international trade and appointing a cabinet mostly in his mold (giving substance to the description of "president's alter ego"), President Trump showed a determination to make good his campaign promises. Even what was generally perceived as a rhetorical "build a wall" declaration, moved to realization with an E.O. that directed the construction of a wall along the US and Mexican borders.
Of deep concern to business was his exit from the Trans Pacific Partnership (TPP) which ironically was an American initiative. It signaled to many businessmen around the globe that Trump giving way to China in the global business leadership as China aggressively pursued its Silk Road trade partnerships. Even Trump's remarks on NATO worried businessmen as it could weaken the economic vibrancy of a protected Europe as Russia sought to surround it with its cemented ties with Syria, Turkey and other crisis mired Middle East countries. Trump's personal intervention to prevent American firms from relocating or expanding abroad as he strive to keep jobs in the USA meant a distortion of the business maxim to go where the synergies contributed to the best bottom line. Taken to the extreme, it would make products and services expensive to American consumers and render American made products uncompetitive in the global market.
If these were not enough, the biggest blow to business, American or global, was Trump's ill advised and hastily prepared Executive Order imposing a travel ban on citizens from specific countries but seen as predominantly Muslim. Creating havoc not just for refugees but also for returning family members, students, professional, it also severely struck at a vital cord of American business – the ability to travel and transact business freely. All of a sudden, business relying on outsourced talent were at risk. Business plans disrupted and millions in business opportunities lost. No wonder American multinationals have publicly opposed it and some are contributing to the coffers of the American Civil Liberties Union to fund its cases in court.
Unless Trump starts to learn that running the government is not like running one's business (although many executives have critical comments on how Trump run his business) the United States of America will witness a deep decline in global esteem. Worse, it could accelerate the decline of the American economy.
melito.jr@gmail.com