I have been reading with shock and concern the latest exchanges between the Trump Administration and U.S. companies facing risings costs of goods and materials because of the latest round of tariffs. For example, one of the recent skirmishes involves Apple, which has been threatened by President Trump with a 25% tariff if the company does not move more of its manufacturing back to the U.S.
Earlier, Walmart had warned about higher tariffs leading to higher consumer prices—which, in my view, is simply economics 101.
President Trump fired back with a social media post that has reverberated across the business headlines: “Walmart should STOP trying to blame Tariffs as the reason for raising prices throughout the chain. Between Walmart and China they should, as is said, ‘EAT THE TARIFFS,’ and not charge valued customers ANYTHING. I’ll be watching, and so will your customers!!!”
I had to read this several times. The fact that the President of the United States, in a free market capitalistic system is warning CEOs what they can do in terms of pricing products is absolutely amazing. 😳😳
I have been reflecting on this all weekend as I write my next article for Forbes on the topic. Frankly, it has stirred up my emotions quite a bit. Through self-reflection, I asked myself what I could do. On one hand, I could just “watch the movie” and continue reading the news, such as a recent New York Times article about how CEOs are “holding their tongues” and trying to walk a “tightrope” when speaking publicly about their businesses and forecasts. Or, I could choose to be part of the movie by speaking up.
You can probably guess from this blog post that I’m opting for the latter—I’m going public with my thoughts on how values-based leaders have no choice but to speak up and speak out on the truth. It may not be popular, and in this environment it may feel politically unwise. However, values-based leaders must always tell it like it is—even in the fact of pushback and fallout.
It goes back to two of my favorite pieces of advice that guide me:
- Do the right thing
- Do the best you can do
In this spirit, my next Forbes article that will be published tomorrow focuses on how values-based leaders cannot – and must not – avoid calling out Trump for his actions, no matter what the potential consequences, including his “on again, off again” tariffs that are wreaking havoc on companies, consumers, investors, and the economy as a whole. I will share a link once the article is live.
Eager to read your thoughts, Harry.
Amen and thank you!
Well, it was worth the wait! Excellent article, Harry.
Thank you for writing this and putting a solid statement in writing at this point in time.
I particularly liked this line:
“Otherwise, people—and especially employees and consumers—will be told one thing, while reality is another. That’s the exact opposite of values-based leadership and good corporate governance.”
It hurts performance of individuals, teams (and families), and organizations (and communities) when the powerful distort and conceal reality.
Strong arm tactics don’t make for healthy marketplaces. Or democracies.