Leading U.S. law firms are preparing for potential repercussions from Donald Trump as tensions rise following the capitulation of the firm Paul Weiss to his demands.

Legal industry leaders are racing to reassure clients that the White House's hostility will not impede their ability to represent clients effectively.

One senior attorney, speaking on condition of anonymity, described the atmosphere among law firms as one of 'paralyzing fear', with many worried about becoming the next targets.

In recent weeks, Trump has issued executive orders aimed at law firms such as Perkins Coie and Paul Weiss, along with directives targeting Covington & Burling, a prominent Washington D.C.-based firm.

The orders have reportedly directed federal agencies to revoke security clearances and terminate government contracts with those firms and their affiliates.

Despite the complex litigation and high-profile transactions managed by Paul Weiss, the firm has a history of supporting progressive causes and counts several former Democratic officials among its partners.

Paul Weiss has also served as a major fundraising entity, raising over $1 million for Kamala Harris and the Democratic National Committee in the past year.

Last week, the firm acquiesced to Trump’s demands, with CEO Brad Karp stating that the survival of Paul Weiss had been at stake.

Conversely, Perkins Coie, a smaller firm, is currently fighting legal action against the decisions made by the Trump administration.

Recently, concerns have intensified over the potential for additional executive orders targeting law firms, particularly those associated with Trump's previous legal opponents.

Elon Musk, a close ally of Trump, publicly criticized Skadden Arps, a New York law firm, on social media for taking on a pro bono case against right-wing activist Dinesh D'Souza, fueling speculation that the firm may become a target of government action.

Attorneys at WilmerHale, which includes Robert Mueller—who led the investigation into Russian interference in the 2016 election—and represents several government whistleblowers dismissed by Trump, have expressed anxiety about becoming targets as well.

Despite this, the firm has worked on preparing Trump’s nominees for Senate confirmation and has handled cases against Democratic administrations.

Representatives for Skadden have not responded to requests for comments, while Wilmer has declined to provide a statement.

In remarks at the White House, Trump suggested that there are 'others who want to settle as well', asserting that 'the biggest companies...

are all back and realize they made mistakes', emphasizing that law firms 'have to act properly'.

This report was compiled with input from over 30 attorneys at major firms and individuals connected to the legal community, though only around a dozen were willing to speak on the record due to fears of retribution from the president and his allies.

Karp faced significant backlash from within Paul Weiss and the broader legal sector over his decision to settle, amid worries that this may encourage further targeting of other law firms by Trump, potentially jeopardizing the American legal system as a whole.

More than 100 former employees of Paul Weiss signed a letter protesting Karp’s decision last Monday, indicating their discontent with the agreement.

Additionally, peers of Karp from other firms have criticized his capitulation, arguing that as a leader of one of the country’s most prestigious law firms, he was in a better position to rally attorneys against the administration's overreach.

Some have questioned Karp's assertion in an email that the 'executive order could have easily destroyed our firm'.

Many attorneys at Paul Weiss and competing firms noted that Trump's extensive attacks have limited clients' options for transferring to other firms, as the legal industry tends to move slowly, suggesting that Karp's firm is not in immediate danger.

Defenders of Karp, including several senior attorneys, pointed out that the risks of losing clients were substantial, as most major firms sought to avoid incurring Trump's wrath.

Under the executive order, Paul Weiss's clients could potentially lose government contracts, threatening the stability of the firm, which reported earnings of $2.6 billion last year and counts major clients such as Goldman Sachs, Apollo Global Management, Exxon, and the National Football League.

According to a competing firm attorney, 'Brad Karp is the scapegoat, but overall, the deal was sensible'.

Another attorney observed that Trump had asked Karp to carry out $40 million worth of pro bono legal work related to combating antisemitism, which was characterized as a markedly different issue than attempting to extricate miscreants from jail, emphasizing the humiliation Karp faced when he was obliged to 'kneel and kiss the ring'.

An attorney from another rival firm stated that Karp had tried to build a coalition of law firms to contest the executive order, but others were hesitant to provide their support.

'When Brad received the executive order, there was a move to gather signatures on a petition or submit a memo, with everyone participating.

But soon enough, everyone began to ask: who else would sign?

And no one was prepared to do so.

So Brad had to proceed alone and strike a deal'.

Another source familiar with these efforts indicated that only a 'handful' of law firms eventually agreed to append their names to a joint memo.