How American CEOs have started speaking in roundabout ways to keep Trump's terror at bay

American business leaders are adopting a new playbook in order to make sure Trump remains in good humour -- be vague, avoid being direct, don’t mention “Trump” by name.

According to a report in the New York Times, for the CEOs of US in the era of Donald Trump, public speaking has become a fraught balancing act -- one single misadventure while speaking could invite fire from the president. They have now carefully cultivated the habit of holding their tongue to a considerable degree when they speak, even in matters of great importance to their business.

Costs are rising for American companies in the wake of Trump's tariffs as sourcing of materials has become costlier. During earnings calls, companies have to inform shareholders of the same and tell them how they plan to deal with the rising costs. Normally, it involves passing on the extra cost to consumers. But because of the fear of Trump, no company is feeling free to say so publicly.

This terror has seeped so deep into the US corporate psyche that a new culture of bizarre euphemism -- aimed at keeping Trump from going berserk -- has begun taking root across businesses.

Costly lessons

Retail major Walmart learnt it the hard way. During a recent earnings call, Walmart CEO Doug McMillon expressed appreciation that tariffs on Chinese goods had dropped from 145% to 30%. Still, he admitted the company likely couldn’t “absorb all the pressure.” Walmart’s CFO later told CNBC the retailer was preparing to implement some price increases as early as this month.

Shortly afterward, Trump posted on Truth Social, scolding Walmart for using tariffs as a justification for price hikes. He demanded that Walmart, the largest retail chain in the country, and China should “EAT THE TARIFFS,” warning ominously, “I’ll be watching, and so will your customers!”
That message has not gone unnoticed in corporate boardrooms across the nation. So, at a time when the consequences of Trump’s tariff policies are rippling through businesses, CEOs have been left tongue-tied.

Here are some samples collated by the New York Times that give a taste of what businesses are facing under Trump:

• When companies want to mention tariffs, they are told by advisers to say "sourcing cost", "input cost" or "supply chain cost" instead.
• When companies want to mention the financial impacts of Trump's trade policies, advisers suggest saying the "fluid" or "uncertain" economic environment.
• When companies want to mention global supply chain reconfiguration costs, advisers suggest they instead say an opportunity to increase "productivity".

New normal

Under Trump, straightforward commentary has sometimes provoked strong pushback. According to NYT's report, when Mattel reported its quarterly earnings in early May, the company said it would increase prices on toys sold in the US because of the then-145% tariff on Chinese imports. It also withdrew its annual financial forecast, citing volatility in trade policy.

Mattel CEO Ynon Kreiz appeared on TV and, when asked whether domestic manufacturing could be a cost-effective alternative, replied bluntly: “We don’t see that happening.”

A few days later, inside the Oval Office, Trump publicly expressed his dissatisfaction. He floated the idea of placing a 100% tariff on Mattel’s goods and predicted, “They won’t sell one toy in the United States.” He also added, “I wouldn’t want to have him as an executive too long.”

Financial analysts and corporate consultants have predicted that, moving forward, retail executives will aim to sidestep direct commentary on tariffs in upcoming investor discussions.

“Are they scared of Trump? Absolutely,” David Swartz, senior equity analyst at Morningstar, told NYT. “Even mild, factual comments—like those from Walmart and Mattel—can provoke him, simply because they tell the truth about his policies.”

Fear has led American companies to treat tariffs as an "unchangeable reality rather than challenge their legitimacy", the newspaper quoted Swartz as saying.