Trump Warned by Walmart, Target, and Home Depot CEOs That Disastrous Tariff Policy Will Lead to ‘Empty Shelves’
AP Photo/Mary Altaffer
President Donald Trump “got a scare” from CEOs of the nation’s largest big box retailers that their shelves could soon be empty as a result of his draconian tariff policy announced on April 2, according to a report from Axios. As a result, the White House appears to be pivoting to a much softer position on trade.
Markets rallied on Tuesday as investors learned that the Trump administration was pivoting to a softer position on the controversial tariff policy, which cratered 401ks and led to talk of an inevitable recession.
At the root of this news were comments made by Treasury Secretary Scott Bessent in a private speech to JP Morgan, during which he admitted an ongoing trade war with China was not sustainable.
“I do say China is going to be a slog in terms of the negotiations,” Bessent said, according to a transcript obtained by The Associated Press. “Neither side thinks the status quo is sustainable.”
But CEOs of Walmart, Target, and Home Depot privately warned Trump in an Oval Office meeting that supply changes will be disrupted, prices will increase, and shelves of their stores will be empty, according to sources reported by Axios.
Marc Caputo and Ben Berkowitz report:
“The big box CEOs flat out told him [Trump] the prices aren’t going up, they’re steady right now, but they will go up. And this wasn’t about food. But he was told that shelves will be empty,” an administration official familiar with the meeting told Axios.
Another official briefed on the meeting said the CEOs told Trump disruptions could become noticeable in two weeks.
While that was happening, financial markets were slumping — stocks, bonds, the dollar — as investors panicked about Trump’s latest threats to oust Fed chair Jerome Powell and step on the central bank’s independence.
Trump also revealed to reporters that he had “no intention” of firing Powell, which calmed frayed nerves in the investor community and also led to a rally.
