Chief executives of major U.S. companies huddled with President Donald Trump at the White House on Friday and some of them expressed concern about a travel ban on people from seven Muslim-majority countries travelling to the United States.
Business leaders said afterward that the group, which included Jamie Dimon of JP Morgan Chase & Co (JPM.N) and Indra Nooyi of PepsiCo Inc (PEP.N), discussed bank rules, tax reform, and objections to Trump’s week-old ban.
Some companies are worried that the travel restrictions will impact their employees or create uncertainty that could rattle markets. Tech companies also have broader concerns about Trump’s immigration policies because of the number of foreign workers they employ in the United States.
The U.S. business community has been divided in their approach on taxes and immigration, and some leaders are wary of working with a president who uses his platform to attack companies that vex him, such as threatening penalties for manufacturing outside the United States.
Homeland Security Secretary John Kelly delivered an update to the corporate leaders on the travel restrictions, which caused chaos at major U.S. airports and are now facing court challenges.
“There was obviously concern by different people and explanations and that issue had to be covered and was covered,” Blackstone Group Chief Executive Stephen Schwarzman, who leads the advisory group, said on Fox Business.
Participants including Elon Musk of Tesla Inc (TSLA.O) had said before the meeting that they would raise concerns with Trump about the travel crackdown.
The meeting, which also included Mary Barra of General Motors Co (GM.N) and Jim McNerney, formerly of Boeing Co (BA.N), convened a business advisory panel that Trump announced in December.
Uber CEO Travis Kalanick quit the group under pressure from activists over the order. Musk defended his own decision to participate on Friday, saying that going to the meeting did not mean he agreed with Trump’s actions.
The White House said in a statement on Thursday evening that did not mention Uber that Trump “understands the importance of an open dialogue with fellow business leaders to discuss how to best make our nation’s economy stronger.”
Executives from Ford Motor Co (F.N) also criticized the ban, but others, including General Motors and JPMorgan Chase have not taken a position.
SPLIT ON TAX REFORM
Trump has also met with executives from the U.S. pharmaceutical and auto industries as part of a push to step up U.S. job creation.
Division in the corporate world is also developing over taxes. Boeing Co and General Electric Co (GE.N) on Thursday joined a group in support of a congressional plan to tax all imports. But that plan, which does not have universal support among Republicans, is opposed by many U.S. retailers, which say it could raise prices for consumers.
“If you’re a big U.S. manufacturer and exporter, you love it. And if you’re a retailer bringing a lot of your stuff in, it has ramifications for you,” Jack Welch, the former GE chief executive, said on Fox Business after the meeting. “It’s not a simple issue.”
Republican leaders say tax reform is a top priority, but they have acknowledged it could take until the end of 2017 or longer to finish legislation.
“If I were a company, I’d be worried about tax reform,” said Bernie Williams, chief investment officer at USAA Investment Solutions, in San Antonio.
The White House meeting with the group is also set to cover trade, regulatory relief and infrastructure.
[Source:- Reuters]
