NextFin news, On October 22, 2025, Mark Cohen, the former CEO of Sears Canada and retired director of Columbia Business School’s retail studies program, sharply criticized US corporate executives for their failure to openly oppose President Donald Trump’s escalating tariff regime. Speaking to Fortune and reported by LNG in Northern BC, Cohen accused major retail CEOs of cowardice, stating that fear of retaliation has silenced industry leaders despite the mounting economic pressures caused by the tariffs.
Cohen detailed how retailers and manufacturers are scrambling to adjust forecasts, protect profit margins, and renegotiate supplier contracts in response to the tariffs. While some large retailers like Walmart have managed to keep shelves stocked and prices relatively stable through strategic stockpiling and product quality adjustments during the spring and summer, Cohen warned that these measures are no longer sustainable as the holiday season approaches. He described the tariffs as a "hidden time bomb" embedded in the US economy, with delayed but severe impacts on supply chains and pricing.
He further explained that unlike traditional taxes, tariffs impose costs well before products reach consumers, requiring companies to pay duties upfront at customs. This shift has precipitated liquidity crises for tens of thousands of small and medium-sized importers unprepared for such sudden financial burdens. Cohen emphasized that the cumulative effect of these tariffs is catastrophic, likening the crisis to the economic shock of the COVID-19 pandemic for smaller businesses.
According to Cohen, the reluctance of CEOs to publicly challenge the tariffs stems from fear of political and economic retaliation, which he labels as cowardice. This silence, he argues, undermines the ability of the business community to influence trade policy and protect the broader economy from escalating harm.
The context of Cohen’s remarks is the ongoing trade war initiated by President Donald Trump since his inauguration in January 2025, which has seen a series of tariff hikes on imports, particularly from China. These tariffs aim to protect domestic industries but have also disrupted global supply chains, increased costs for US businesses, and contributed to inflationary pressures.
From an analytical perspective, Cohen’s critique highlights a critical tension between corporate risk management and political realities under the Trump administration. The fear among CEOs to confront tariff policies publicly may reflect concerns about access to government, regulatory repercussions, or market uncertainties. However, this silence risks allowing trade policies to proceed unchecked, potentially exacerbating economic disruptions.
Empirical data supports Cohen’s concerns: recent industry reports indicate that tariffs have increased input costs by an average of 15-25% for many manufacturers, with smaller importers facing cash flow constraints due to upfront tariff payments. Retailers have reported margin compressions and inventory challenges, with some forced to raise consumer prices by up to 10% during peak seasons. The delayed impact of tariffs means that while early 2025 saw some mitigation through stockpiling, the full cost burden is now materializing, threatening profitability and employment.
Looking forward, if the current tariff regime persists or intensifies, the US economy may face prolonged supply chain disruptions, higher consumer prices, and reduced competitiveness in global markets. Smaller businesses, lacking the financial resilience of retail giants, are particularly vulnerable, risking closures and job losses. The reluctance of corporate leaders to engage publicly on trade policy may hinder coordinated advocacy for more balanced approaches that protect domestic interests without imposing excessive economic costs.
In conclusion, Mark Cohen’s public condemnation serves as a wake-up call to US corporate leadership and policymakers. It underscores the urgent need for transparent dialogue and strategic collaboration to address the unintended consequences of tariff policies. Without such engagement, the economic fallout could deepen, undermining growth and stability in the US retail and manufacturing sectors.
According to LNG in Northern BC, Cohen’s remarks reflect a broader unease within the business community about the trajectory of US trade policy under President Donald Trump’s administration, inaugurated in January 2025, and the complex challenges it poses to corporate America’s operational and financial frameworks.
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