For years, corporate America has largely acquiesced to the whims of the Trump administration, quietly going along with the president's policies and avoiding open confrontation. But as Trump's second term progresses, a growing number of businesses are starting to push back - and Costco's recent lawsuit over tariffs may be just the beginning.
A Shift in the Corporate Landscape
The business community's relationship with Trump has undergone a remarkable transformation since his first term. Back then, many CEOs were willing to speak out against the president's controversial statements and actions, most notably when multiple executives quit his business council over his response to the neo-Nazi violence in Charlottesville.
But in Trump's second term, that corporate backbone has largely disappeared. As The New Yorker's John Cassidy observed, the titans of American capitalism "can't be relied on to push back against him" as the administration ramps up its attacks on the media and other targets.
The Tariff Tipping Point?
What this really means is that corporate America has grown increasingly comfortable with the Trump status quo, prioritizing profits and regulatory rollbacks over standing up for democratic norms. The Financial Times reported that big businesses have "largely treated President Donald Trump with kid gloves" in his second term, seeking favor through donations and private meetings.
But the tide may be turning when it comes to one of Trump's signature policies: tariffs. As CNN reported, Costco's decision to sue the administration over tariffs was a shocking move, with the retail giant becoming the highest-profile public company to directly challenge Trump on the issue. The bigger picture here is that tariffs are increasingly unpopular with American consumers, who associate them with rising costs and economic uncertainty.
A Test of Corporate Courage
So will Costco's lawsuit mark the start of a broader corporate revolt against the Trump administration? It's hard to say for sure, but the stakes have never been higher. With the president wielding his power in increasingly autocratic ways, corporate America faces a crucial test of its willingness to stand up for democratic values - even if it means risking the president's wrath. The future of the country may depend on whether businesses are willing to put principle over profit.