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I think he is suggesting that government might do so.

Or to put a finer point on it: Suggesting that some President would abuse the powers of the office, using the government as a tool to harm others out of corrupt personal revenge.

The prisoner's dilemma here is that each group that surrenders to the potential threat makes it more likely the bad situation will actually come to pass.

They are basically implying that the government should support businesses that fall in line with the government.

Which is a strange thing to support though, but it often happens anyway.

I don’t think they’re suggesting that Trump should, but that there’s a good chance that he would.

It's not a matter of if Trump would. He absolutely will. Donald Trump has an ego the size of the universe, and if someone slights him in any way, he will be out for blood.