The future of Donald Trump’s second term remains uncertain, but his first administration was characterized by a strong focus on business-related issues, according to Joe Kaeser, a prominent German business leader. In a recent interview with CNBC, Kaeser, who chairs the supervisory board of Siemens Energy, reflected on his experiences during Trump’s early presidency.
Kaeser noted that the Trump administration has been very responsive to businesses’ concerns. “During that time, if I had a problem to solve for my company, the administration was extremely responsive,” he shared with CNBC’s Annette Weisbach. Having served as CEO of Siemens when Trump was president, Kaeser has observed several initiatives that he believes have had a positive impact on the economy.
He highlighted the importance of Trump’s tax reforms, which include reductions in federal income tax rates, larger standard deductions and adjustments to child tax credits and estate tax exemptions. While these tax cuts, enacted in 2017, were celebrated at the time, a subsequent study indicated that their contribution to the robust economic growth seen in 2018 was somewhat limited.
As Trump prepares for his second term, taxes are expected to become a central theme of his economic strategy, along with other policies such as imposing high tariffs on imports and reducing regulations. Analysts suggest that while it is difficult to predict the extent of implementation of these proposals, some are likely to have global implications, affecting both nations and businesses.
In his conversation with CNBC, Kaeser highlighted Trump’s distinct approach to governance, saying, “He has his own way of doing things and you can generally anticipate what’s going to happen. This predictability makes it easier for companies and countries to understand what is needed.”
Despite his appreciation for the responsiveness of the first Trump administration, Kaeser expressed uncertainty about the nature of the next term. He highlighted a notable change: The Senate, House of Representatives, Supreme Court and White House now align ideologically. “The jury is still out on what that means,” he said.
Kaeser stressed the importance of preparedness for countries like Germany and others. He explained that dealing with leaders who have a strong, assertive style requires a position of strength. “If you are in a weak position, it is often best to avoid confrontation with these figures,” he advised.
Kaeser has not shied away from criticizing Trump in the past. In 2019, following Trump’s disparaging remarks toward several progressive Democratic congresswomen, Kaeser expressed concern about the political climate. He was particularly troubled by the “send her back” rallying cry aimed at MP Ilhan Omar, who fled Somalia as a child. Kaeser reflected on the gravity of such rhetoric, saying it makes the highest office in the land appear as a “face of racism and exclusion.”
Having lived in the United States for many years, Kaeser fondly recalled the ideals of freedom, tolerance and openness he experienced. He noted that these values were emblematic of what he believed was the essence of America at its best.