By Ted Mann
Corporate leaders are looking beyond the chaotic opening month
of President Donald Trump's tenure, hopeful his administration will
deliver on promises for an overhaul of taxes and regulations that
could boost their fortunes and those of their workers.
Executives from major manufacturers including General Electric
Co., Dow Chemical Co., and Lockheed Martin Corp., gathered for 2
1/2 hours on Thursday to trade policy proposals with senior
administration officials at the White House. More than half that
time was spent in an audience with Mr. Trump, who said he was
making good on a campaign pledge to restore prosperity in
struggling sectors of the U.S. economy.
In private sessions beforehand, the executives compared concrete
steps they thought the administration could take to help their
business interests, identifying specific regulations they want
eased.
Mr. Trump and his advisers are "very, very keen on putting meat
on the bones," said Andrew Liveris, chief executive of Dow Chemical
Co., and the leader of Mr. Trump's advisory panel of manufacturing
bosses. "They really do want specifics from industrial
leaders."
The manufacturing leaders plan to meet again in two months, and
an early imperative is to distinguish steps that can be taken
immediately and actions that could take longer to filter into the
economy, Mr. Liveris said.
"Bringing manufacturing back to America, bringing high-wage
jobs, was one of our campaign promises and themes and it resonated
with everybody, " Mr. Trump said in an open session surrounded by
senior advisers and two dozen corporate executives. "I'm delivering
on everything we've said."
The gathering reinforced an image Mr. Trump has worked to
project: The White House is a forum for leading figures in business
to make proposals that failed to gain traction in former President
Barack Obama's administration. The setting, the White House State
Dining Room beneath a massive portrait of Lincoln, served as
evidence that the leaders of some of the country's most important
companies are willing to work with Mr. Trump and appear by his
side.
Seated at the president's right hand was Jared Kushner, his
son-in-law and an adviser. Mr. Trump has delegated business
outreach to Mr. Kushner, who is pushing manufacturing executives to
deliver specific action items where the government can make U.S.
firms more competitive, said Mr. Liveris.
Mr. Trump focused on a favorite theme: He said other countries
have got the better of the U.S. in free-trade deals because the
U.S. runs high deficits with its largest trade partners.
"I said to my people, 'Find a country where we actually do
well,'" he said during the meeting. "So far we haven't found a
country."
Mr. Trump struck a jocular tone with the executives in the room,
boasting about his electoral victory and declaring that he would
bring back faded sectors of the U.S. industrial base. He teased
Gregory Hayes, chief executive officer of United Technologies
Corp., which agreed to hold back 800 jobs out of more than 2,000 it
had planned to send to Mexico, after Mr. Trump's criticism and a
corporate tax break from the state of Indiana. And he joked with
Marillyn Hewson, chief executive of Lockheed Martin Corp., that
Democratic candidate Hillary Clinton wouldn't have pushed to cut
$700 million from the cost of the company's F-35 fighter, as Mr.
Trump has.
Ms. Hewson, like the other executives, thanked Mr. Trump for the
meeting.
Before the corporate executives met with Mr. Trump, they split
into four working groups for focused discussion on taxes and trade,
regulation, infrastructure, and improved training for the U.S.
manufacturing workforce.
The executives and Mr. Trump's advisers disclosed little about
the substance of their discussions, especially on key questions
like whether to adopt a border-adjusted tax. Under a
border-adjustment plan, companies wouldn't be able to deduct the
cost of imports from their revenue but exports and other foreign
sales would be tax-free. The issue has divided companies that stand
to lose or benefit from the proposal.
In one discussion open to the media, executives and
administration officials talked about cutting regulation. One
executive said 20% of the price of military products covers the
cost of regulation. In another session, the group talked about
raising the gas tax by indexing it to inflation, a move that could
create more revenue for infrastructure improvements.
An executive who was present at the White House meetings said
Mr. Trump left open the door for a border tax, indicating the
administration might consider several variations.
Mr. Trump has made rolling back regulations a priority and has
already directed the Treasury Department to undertake a broad
review of financial rules. Business executives and top
administration leaders have said rolling back and modifying
regulations will boost economic growth. The Trump administration
has provided "not just an open door, but real encouragement" in
acknowledging concerns raised by business leaders over regulatory
issues, said Joshua Bolten, president of the Business Roundtable, a
trade group representing large U.S. companies.
"We like what we're seeing so far," said Mark Costa, chief
executive of Eastman Chemical Co., who drafted a letter the
Business Roundtable delivered to the White House on Wednesday
outlining regulations executives say are their top targets for
repeal or modification in the Trump administration.
While businesses remain optimistic the Trump administration will
curb regulations, they are much warier about the White House's push
to curb immigration and trade. In the Business Roundtable's letter,
Mr. Costa said the group stands ready to prevent "unintended
consequences" from such curbs, which "would inhibit the ability for
U.S. companies to drive economic growth and be globally
competitive."
Mr. Liveris said immigration issues didn't come up at Thursday's
meeting. On trade, "what we're doing is making sure everyone
understands what the barriers are," he said.
--Peter Nicholas contributed to this article.
Write to Ted Mann at ted.mann@wsj.com
(END) Dow Jones Newswires
February 23, 2017 20:09 ET (01:09 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.