Your daily digest of business news from Trump's Washington
Here’s a riddle: How can a president not yet a week on the job already demonstrate such an uncanny mastery for his office’s soft power while simultaneously appearing intent on destroying his own mandate? It’s confounding to witness, but Donald Trump managed to do both over the last two days.
The president kicked off Tuesday by meeting with the heads of Detroit’s Big Three automakers, a sector he regularly blasted on the trail for underinvesting in the United States. In full “Apprentice” mode with news cameras rolling, Trump challenged the CEOs to add more jobs and capacity at home in return for lighter tax and regulatory burdens. After the meeting, the three executives heaped praise on Trump, with Ford chief Mark Fields talking up the president’s “courage” for walking away from the Trans-Pacific Partnership and heralding a new era of cooperation between the industry and government that could spawn a “renaissance in American manufacturing.” Foreign car makers weren’t invited, but not to be outdone, later in the day, Toyota announced it will be adding 400 jobs to an existing SUV plant in Vice President Mike Pence’s home state of Indiana.
The ongoing parade of chief executives making their way since the election first to Trump Tower, and now, since his swearing-in, to the West Wing, is all the more remarkable considering how the country’s corporate leaders treated Trump during the campaign. Not a single CEO in the Fortune 100 endorsed him. Indeed, many gold-plated names from the business world who’d previously identified as Republican made a public show of aligning themselves with Hillary Clinton.
It remains to be seen whether Trump’s negotiator-in-chief approach will yield real, meaningful results for growth. But the strategy is a lot less likely to succeed if the president, who’s already suffering historically low approval ratings, insists on squandering what goodwill he’s got by chasing baseless conspiracy theories. His claim — made behind closed doors to Congressional leaders on Monday night, and then the subject of wall-to-wall coverage on Tuesday — that 3 to 5 million illegal votes were cast in the presidential election renewed grave questions about his ability to grapple with observed reality. And by forcing his staff to toe his line, he risks not only stepping on the administration’s preferred story of the day but doing irreparable longterm damage to his entire team’s credibility.
The president doubled-down Wednesday morning, tweeting that he’ll seek a “major investigation” into voter fraud, for which no evidence exists, and will seek to “strengthen up voting procedures” based on the results. At best, it appears he simply can’t accept his own win, since it didn’t include a popular vote majority; at worst, he’s aiming to construct a pretense for rolling back voting rights protections. Either way, it’s a waste of precious time and capital he could be devoting to jobs.
The president will sign executive orders temporarily banning most refugees and suspending visas for citizens of Syria and six other Middle Eastern and African countries.
As part of his blitz of national security directives this week, Trump will order construction of the Mexican border wall he promised on the campaign.
Pharma companies are eager to expand intellectual property protections around the globe for biologics, their priciest class of drugs.
America’s trading partners are already reaching out to China in the wake of the decision by the new administration to abandon the Pacific trade pact.
Retailers are responding with growing alarm to interest from some Republicans in imposing a so-called border adjustment tax, which they say could force them to jack up prices on consumers.
Number of the Day
The minimum value of the package that Gary Cohn, whom Trump tapped to head the National Economic Council, is pulling in for walking away from his gig as president of Goldman Sachs to join the administration. Business interests are hoping Cohn will counterbalance some of the more populist voices in Trump’s inner circle, typified by fellow Goldman alum Steve Bannon, now serving as chief strategist.