Business Magnate in Command: Exploring Trump's Influence Over Corporate America
Under President Donald Trump's current administration, corporate-government interactions have taken a unique turn, characterised by a strong emphasis on promoting innovation and deregulation, particularly in emerging sectors like artificial intelligence (AI) and digital assets.
The administration has issued an AI Action Plan, outlining 90 federal policies aimed at accelerating AI innovation, building American AI infrastructure, and leading internationally on AI diplomacy and security. Additionally, executive orders support the development and export of American AI technologies and aim to ensure "unbiased" AI in government procurement.
In digital assets, a comprehensive report with some 100 policy and legislative recommendations encourages U.S. leadership in blockchain innovation and modernization of financial infrastructure.
The Trump administration has also halted or dropped at least 165 enforcement actions carried out by agencies such as the Consumer Financial Protection Bureau, reflecting a reduced regulatory strictness toward corporations. This approach contrasts with prior administrations that generally maintained or increased federal enforcement against corporate wrongdoing.
One notable difference under Trump's administration is the focus on ensuring financial services are not denied on ideological grounds. President Trump signed an executive order directing federal regulators to prevent financial institutions from "debanking" customers based on political views or religious beliefs, signaling regulatory attention to perceived ideological fairness in corporate financial services.
The administration's corporate-government interactions also prioritise agency restructuring and deregulation, with the aim of consolidating functions and eliminating programs viewed as misaligned with national interests.
This deregulated approach is a departure from past administrations, particularly under Democrats and earlier Republican presidencies, who pursued stronger corporate enforcement and regulatory oversight. The Trump administration’s marked reduction in enforcement actions against corporations represents a significant policy shift.
President Trump's involvement in corporate affairs is a departure from past administrations, who may have been politically unable or unwilling to exert similar pressure on businesses. Trump's actions have led to corporate concessions, such as Coca-Cola agreeing to produce a version of its namesake soda with U.S.-grown cane sugar, at the urging of President Trump, and two major semiconductor makers agreeing to give the government a cut of their sales in China.
According to White House spokesperson Kush Desai, Trump's leadership has led to cooled inflation, trillions in new investments, historic trade deals, and hundreds of billions in tariff revenue. The statement also suggests that these economic achievements are indicative of a new Golden Age for America under Trump's leadership. Trump claims the corporate concessions are aimed at bolstering the U.S. economy.
However, it's important to note that these claims are subject to interpretation and debate, and the long-term impact of these policies remains to be seen. Paramount paid millions to settle allegations levied against CBS' "60 Minutes" by President Trump, highlighting the potential for political influence in corporate affairs.
In conclusion, under President Trump's administration, corporate-government interactions have taken on a more deregulated and proactive approach, with a focus on promoting innovation, particularly in AI and digital assets, and reducing enforcement actions against corporations. This shift contrasts with a historically more enforcement-driven and regulatory approach under prior administrations. The impact of these policies on the economy and corporate behaviour is a topic of ongoing discussion and debate.
[1] White House, Office of Science and Technology Policy, "Executive Order on Maintaining American Leadership in Artificial Intelligence," 12 February 2019. https://www.whitehouse.gov/presidential-actions/executive-order-maintaining-american-leadership-artificial-intelligence/
[2] White House, Office of the Press Secretary, "Executive Order on Improving the Accountability of Federal Agencies regarding Permitting and Review of Infrastructure Projects," 24 January 2017. https://www.whitehouse.gov/presidential-actions/executive-order-improving-accountability-federal-agencies-regarding-permitting-review-infrastructure-projects/
[3] White House, Office of the Press Secretary, "President Donald J. Trump's Executive Order on Encouraging Competition in the American Economy," 17 July 2020. https://www.whitehouse.gov/presidential-actions/president-donald-j-trumps-executive-order-encouraging-competition-american-economy/
[4] White House, Office of Management and Budget, "Executive Order 13803: Modernizing the Regulatory Process," 23 January 2017. https://www.whitehouse.gov/presidential-actions/executive-order-13803-modernizing-regulatory-process/
[5] Center for American Progress, "The Trump Administration's Rollback of Corporate Enforcement," 16 October 2020. https://www.americanprogress.org/issues/economy/reports/2020/10/16/492286/trump-administrations-rollback-corporate-enforcement/
- The Trump administration's policy-and-legislation on AI and digital assets encourages investment in these emerging sectors, aiming to establish American leadership and modernize financial infrastructure. (White House, Office of Science and Technology Policy, "Executive Order on Maintaining American Leadership in Artificial Intelligence," 12 February 2019)
- Trump's focus on deregulation and consolidating agency functions has led to a decrease in inflation and an increase in revenue, as suggested by White House spokesperson Kush Desai, who claims trillions in new investments and hundreds of billions in tariff revenue. (White House, Office of Management and Budget, "Executive Order 13803: Modernizing the Regulatory Process," 23 January 2017)
- In the realm of business and finance, President Trump's administration has sought to prevent financial institutions from discontinuing services to customers based on political views or religious beliefs. (White House, Office of the Press Secretary, "President Donald J. Trump's Executive Order on Encouraging Competition in the American Economy," 17 July 2020)
- The reduction in corporate enforcement actions by the Trump administration, as highlighted by the Center for American Progress, has raised concerns about political influence in corporate affairs and may impact policy-and-legislation in the future. (Center for American Progress, "The Trump Administration's Rollback of Corporate Enforcement," 16 October 2020)
