Trump’s Unprecedented Corporate Demands Spark ‘State Capitalism’ Fears as CEOs Stay Silent

The Trump administration is escalating its direct intervention in corporate America, pushing an unprecedented level of control that has business leaders wary but largely silent. Recent actions, including a revenue-sharing deal with Nvidia and public attacks on executives at Intel and Goldman Sachs, are redefining the relationship between the White House and the private sector.

In a striking move this week, President Trump secured a 15% share of Nvidia’s H20 chip sales in China as a condition for easing trade restrictions. Treasury Secretary Scott Bessent indicated that similar demands could be made of other companies. This approach, dubbed ‘Marxist MAGA’ by some experts, has ignited fears of ‘state capitalism’ and cronyism, alarming a business community that traditionally favors free-market principles.

Experts like Ryan Bourne of the Cato Institute and Jeffrey Sonnenfeld of Yale University highlight the significant shift. Sonnenfeld notes a ‘huge concern’ about the administration ‘taking control without the resistance of private-sector decision-making.’ This marks a stark contrast to Trump’s first term, where some corporate leaders openly criticized his policies. Now, most are actively courting the president’s approval, with figures like Apple’s Tim Cook and Amazon’s Jeff Bezos attending his second inauguration in January.

The pressure intensified last week when Trump publicly demanded the resignation of Intel CEO Lip-Bu Tan, accusing him of conflicts related to China. While Tan’s in-person appeal to the White House seemingly resolved that specific issue, Trump quickly targeted Goldman Sachs CEO David Solomon, telling him to ‘get himself a new Economist’ after Chief Economist Jan Hatzius warned about tariff impacts.

Despite investor calm and a surging stock market, concerns persist among Wall Street and small businesses over wide-ranging import taxes and efforts to control the Federal Reserve. Experts predict that only significant market upheaval or worsening inflation will empower CEOs to publicly challenge the administration’s aggressive new stance. In the interim, collective action among business leaders is seen as the only viable path to resist what many view as an erosion of corporate independence.

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