Corporate leaders who attended the recent Yale CEO Caucus were surveyed to determine at what point they should collectively voice concerns about President Donald Trump, with most indicating a 20% decline in the stock market as the threshold. The Nasdaq and Russell 2000 have already experienced significant drops, pushing them into bear market territory, while the S&P 500 is approaching that level.
Although CEOs have refrained from publicly criticizing Trump as he implemented tariffs, the recent downturn in the stock market may prompt a change in this stance.
During an informal poll at the Yale CEO Caucus, 44% of CEOs indicated that a 20% market drop would prompt them to express concerns about Trump, while 22% cited a 30% decline, 10% mentioned a 50% crash, and 24% stated that it was not their role to do so.
The survey did not specify the starting point for measuring the market decline, but some indicators show that stocks have reached or are close to the 20% mark.
While losses are less severe when measured from Trump's inauguration or the time of the poll in mid-March, the recent stock market volatility following "Liberation Day" resulted in a significant decrease in market capitalization, resembling the early days of the COVID-19 pandemic in 2020.
Some executives have reportedly expressed concerns about tariffs in private meetings with Trump and his team, but have refrained from public criticism to avoid upsetting the president.
According to Jeffrey Sonnenfeld, a professor at Yale School of Management who organized the summit, CEOs have shared their frustrations with him, suggesting that trade groups should take a stronger stand against the tariffs or issue collective statements rather than individual criticisms.
Concerns about becoming a target for criticism were expressed by a board member of a US company who mentioned the importance of not being the first to speak out against Trump.
Additionally, another board member stated that a more effective approach would be to privately lobby Trump and his advisors, emphasizing how tariffs could adversely affect his core supporters with increased costs and job losses.
The Business Roundtable voiced support for Trump's aim to achieve fairer trade agreements but cautioned against implementing broad tariffs, warning of potential harm to American manufacturers, workers, families, and exporters.