Companies pull out from Trump brand after storming of Capitol incident
Corporate America is adding its weight in response to the insurgency at the Capitol building on January 6, and are pulling out from any association with the Trump brand after the storming of the capitol incident which economists say will have a profound medium and long-term effect on his business interests. Recently, Signature Bank closed Trump’s personal accounts and the PGA of America stopped plans to hold its 2022 championship at Mr. Trump’s New Jersey golf course.
Such a parting of ways signals the business community’s weariness in being associated with a political figure that has attracted worldwide attention and is indicative of what may happen to the Trump brand. The president’s role in the incident, confirmed by his impeachment by the House this week, has gained criticism from the Business Roundtable to the AFL-CIO labour federation.
Michael D’Antonio, the author of a Trump biography, says the capitol incident has been a game-changer for the support of extreme politics.
“Trump’s name is really an albatross. He is the most disgraced president in history. This is a person who’s synonymous with a mob attacking the US Capitol. I just think this went a step too far.”
Other experts like Tim Calkins, a marketing professor at Northwestern University’s Kellogg School of Management, say Trump’s brand will inevitably suffer long-term.
“Before his term, Trump stood for wealth, success and over-the-top luxury. Now the brand has associations with anti-government views, racism and extremism. This makes the brand fairly toxic.”
Deutsche Bank, to which Trump reportedly owes around $400 million, is also planning to stop engaging in business with him. But the president dismissed any business challenges in an October 15 televised event by saying that the $400 million he owed was “a tiny percentage of my net worth.”
It appears true that some of Trump’s properties have benefitted from his presidency as taxpayer revenue has continuously flowed into his golf courses and clubs where he stays with his family, the secret service and the White House staff.
In fact, CREW estimates that Trump’s properties took in over $100 million from more than 500 visits by the president, according to a report in September 2020. But even that business transaction has received widespread criticism as many say Trump should not have mixed politics with his personal businesses.
D’Antonio predicts that Trump may sell current assets to pay off his Deutsche Bank debt, which means there could be fewer to none Trump hotels, golf courses or towers in the next 10 years.
SOURCE: Bangkok Post
