US Companies Struggle to Navigate Trump’s Trade War Amid Tariff Uncertainty and White House Pressure

A Foxconn factory in China. Specialized workforces and differing skillsets across borders makes it difficult for US companies to move production back to the country © AFP/Getty Images

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US companies are grappling with how to respond to Donald Trump’s escalating trade war. While many executives are deeply concerned about the economic impact of the president’s tariffs, they remain hesitant to voice those concerns publicly, fearing potential retaliation from the White House.

According to executives and board members, corporate leaders are unsure of how extensively they should adjust their business strategies in response to Wednesday’s tariffs. There is growing uncertainty about how long Trump will maintain his current trade stance, and some hope they can privately persuade him to soften these policies.

This uncertainty is compounded by what many describe as a climate of fear. Recent White House attacks on law firms such as Paul Weiss have sent a chilling message.

“You don’t want to be the barking dog for everyone else because you’re going to be the one who will get shot,” said one board leader of a US company.

Another executive suggested that the best strategy is quiet diplomacy — privately lobbying Trump and his advisers with the argument that these policies could ultimately hurt his base through rising prices and job losses.

“It is going to be velvet glove lobbying at his more thoughtful policy advisers, and that clearly includes Scott,” said another board member, referring to US Treasury Secretary Scott Bessent.

Disney CEO Bob Iger addressed the issue during an internal editorial meeting at ABC News. He emphasized that it would be difficult for many US companies to relocate production back to the United States, largely due to the global distribution of specialized workforces and skills.

Iger pointed to Apple’s Foxconn facilities in China as an example, noting that most of the tech giant’s devices are manufactured there. He also warned that Disney would be impacted by rising steel prices, which could drive up costs for building cruise ships.

Trump’s tariffs — and China’s swift retaliation — have disrupted commodity markets. Crude oil prices fell to a three-year low of $65.58 on Friday, with oil traders betting the administration has no immediate plans to reverse course.

Harold Hamm, executive chair of Continental Resources and the Domestic Energy Producers Alliance, remains supportive of Trump’s goals to rebuild US manufacturing and fix unfair trade practices. Still, he cautioned that the energy sector is vulnerable.

“You cannot drill, baby, drill if you are producing oil and gas below the cost of supply,” said Hamm. He expressed hope that the current market turbulence is temporary so shale producers can fulfill Trump’s vision of American energy dominance.

A private equity executive at one of the industry’s largest firms shared that many companies had initially prepared for tariffs, analyzing their impact and developing solutions in advance of “liberation day” — the term used when tariffs were formally introduced.

However, those early plans were often scrapped after the White House’s tariff calculations didn’t meet expectations.

Numerous investment firms are now preparing to communicate their perspectives to clients, many of whom are international investors surprised by the scope of the tariffs.

Carlyle Group is scheduled to host a “special global investment environment update” call on Monday. Co-founder David Rubenstein and two other executives will present a strategy for navigating the new trade landscape.

Some corporate leaders are urging restraint, suggesting that the market may have overreacted.

“While it has been pretty harsh and drastic, we all know stocks have a tendency to overreact and underreact,” said Herman Bulls, vice-chair at JLL and board director at companies including USAA, Host Hotels, Fluence Energy, and Comfort Systems.

“This is not a surprise in terms of the direction,” Bulls added. “This was talked about during the campaign and when he won.”

The announcement of the tariffs came during JPMorgan Chase’s “retail round-up” conference in New York, an event attended by executives, analysts, and investors in the retail sector — one of the industries most directly impacted.