Donald Trump has been handed a worrisome warning from America’s top retail bosses that the Republican’s aggressive tariff tirade could lead to empty store shelves within weeks.
During a private meeting at the White House on Monday, the CEOs of Walmart, Target and Home Depot reportedly told the US President that supply chains could freeze if he proceeds with his planned tariffs.
During the Oval Office meeting, the retail giants refused to mince words about the potential consequences of Trump’s economic agenda, warning that the impact could be noticeable in as little as two weeks.
“The big box CEOs flat out told him the prices aren’t going up, they’re steady right now, but they will go up,” an administration insider told Axios.
Donald Trump has been handed a worrying warning from America’s top retail bosses
REUTERS
The same source added: “And this wasn’t about food. But he was told that shelves will be empty.”
Both Target and Walmart described the encounter as “productive” but refused to elaborate on specific warnings, CBS News reported.
The CEOs’ words seemed to influence the President’s stance since, just one day after the meeting, Trump told reporters that tariffs on China will “come down substantially” from his previously announced 145 per cent rate.
He also walked back threats to fire Jerome Powell, who is the chair of the Federal Reserve.
LATEST ON TRUMP’S TARIFF TIRADE:
Previously, the Trump administration had imposed 145 per cent tariffs on Chinese goods and 10 per cent tariffs on most other countries.
Earlier this month, Trump had also announced steep “reciprocal tariffs” on dozens of other US trading partners on America’s so-called Liberation Day.
But, soon after, he paused most of the non-China levies for 90 days.
Wall Street rallied in response to Trump’s policy shift. By the next morning, the Dow Jones had risen 2.2 per cent whilst Nasdaq surged 3.5 per cent.
In the past, retailers have warned about the levies’ negative impacts on American business.
Even in November, after Trump’s election victory, Walmart CFO John David Rainey told CNBC that he “never want[s] to raise prices” although he admitted that “there probably will be cases where prices will go up for consumers”.
Last month, Target CEO Brian Cornell similarly cautioned that “the consumer will likely see price increases over the next couple of days” from planned tariffs on Mexican imports.
The executives warned that the impact could be noticeable in as little as two weeks
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The import duties have rattled markets over the past month, fuelling fears about rising consumer prices, slower economic growth and supply chain shortfalls.
The Trump administration has considered forming a working group to handle any strains on supply chains caused by the China tariffs.
Despite softening his stance, Trump has stood by his overall tariff strategy, continuing to cast it as a way to boost US manufacturing and counter what he views as unfair trade practices.
The President, however, has maintained that he remains open to negotiating new trade deals with other countries.
