Topline
Three of the nation’s top retail leaders – Walmart’s Doug McMillon, Target’s Brian Cornell and Home Depot’s Ted Decker – met with President Trump at the White House to present their case against the administration’s proposed tariff policies, advising tariffs will raise consumer prices and could potentially disrupt retail supply chains and lead to product shortages, according to Bloomberg.
US President Donald Trump holds a chart as he delivers remarks on reciprocal tariffs during an event … More
AFP via Getty Images
Key Facts
After the Monday sit-down, a Walmart spokesperson said, “We had a productive meeting with President Trump and his team and appreciated the opportunity to share our insights,” according to Reuters.
A Home Depot representative said much the same, adding the meeting was “informative and constructive.”
A Target spokesperson confirmed it was a “productive meeting” where they had the opportunity to “discuss the path forward on trade.”
Using the 90-pause on reciprocal tariffs as leverage, President Trump said his administration is open to hearing from corporate leaders, telling reporters earlier this month, “We’ll also talk to companies. You know, you have to show a certain flexibility. Nobody should be so rigid.”
Background
The $8.5 trillion retail industry and the 132 million American households it serves are facing rapidly rising prices across the board should the proposed reciprocal tariffs be imposed. The National Retail Federation estimated tariffs could cost Americans up to $78 billion in annual spending power across six categories of goods, including apparel, toys, furniture, household appliances, footwear and travel goods. That estimate does not include food and beverage, which totaled $1.5 trillion in spending last year for off-premise personal consumption, according to the Bureau of Economic Analysis.
Vulnerabilities Vary
Walmart customers have less on the line should tariffs be imposed. Only about 33% of the products it carries are sourced internationally, though China and Mexico are its most significant trading partners. On the other hand, Target imports about 50% of its merchandise, including 30% of its private label brands come from China. And Home Depot reports 50% of its goods are sourced in North America, though how much comes in from Canada is not specified.
Crucial Quote
“Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices. A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices,” said NRF vice president of supply chain and customs policy Jonathan Gold in a statement.
Consumers Vote Against Tariffs
American voters want government policy officials to focus on bringing down inflation and the cost of groceries as their top priorities rather than implementing tariffs to reset global trade, according to an NRF/Morning Consult survey among 2,000+ voters conducted at the end of March, before Trump’s “Liberation Day” tariff announcement. Some 76% of those surveyed expect prices to go up if tariffs are implemented. Rising prices will be a blow to all American households, but most especially to those in vulnerable communities, such as low-income households, working-class families, the elderly, families with small children, rural communities, farmers and small businesses.
Tangent
Adding to worries about retail supply chains is a report that product import levels will drop sharply in May and continue to decline through the rest of the year. The NRF predicts a total net volume decline of 15% or more by year-end, which will likely mean selective product shortages on retailers’ shelves.
Paying The Price Of Tariffs
American Apparel & Footwear Association CEO Steve Lamar told CNBC, “Higher prices, job losses, product shortages, and bankruptcies will be only some of the adversity the U.S. economy weathers while the President pursues this ill-advised tariff policy.”
Further Reading
Walmart, Target Executives Meet Trump As Tariff Fears Spread (Bloomberg, 4/22/2025)
Trump Meets With U.S. Retailers To Discuss Tariffs (Reuters, 4/21/2025)
Trump Tariffs Won’t Lead Supply Chains Back To U.S., Companies Will Go Low-Tariff Globe-Hopping: CNBC Survey (CNBC, 4/17/2025)
Target Calls CEO Brian Cornell’s Meeting With Trump About Tariffs ‘Productive’ (Minnesota Star Tribune, 4/22/2025)
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