Several U.S. retail giants in talks with Trump as tariffs hit supply chain
According to CNBC, the chief executive officers of three major U.S. retailers traveled to the White House on April 21, local time, to meet with President Trump to discuss the possible impact of U.S. tariff policies on their import-based business models. Reports indicate that after years of hyperinflation, U.S. consumers are struggling to find lower-priced goods, and for retailers, tariff policies have become a new threat in an already tough economy.
Walmart CEO Doug McMillan, Target CEO Brian Cornell, and Ted Dekker, chairman, president and CEO of Home Depot, the home building supplies retail giant, attended the meeting.
Walmart CFO John David Rainey said that about two-thirds of the company's U.S. sales are made, grown or assembled locally, while the remaining one-third relies on imports from around the world, with China and Mexico being the “most important” suppliers. Target, by contrast, is in a more passive position, selling mostly affordable fashion apparel and home furnishings, which are often made overseas. Home Depot says it sources more than half of its goods in North America.
Supply chain disruptions caused in large part by Trump's tariff policies have challenged retailers, a major driver of the U.S. economy, the report said. Since the announcement of the reciprocal tariffs, shares of US retail giants, with the exception of Walmart, have fallen by varying degrees.
Consumers are snapping up items such as cars, electronics and appliances to avoid the impact of Trump's sweeping tariffs amid high price uncertainty. U.S. retail sales surged 1.4% in March from the previous month, the biggest gain in more than two years, according to a report from the Commerce Department. Auto purchases rose 5.3% as consumers tried to avoid the 25% tariff on finished vehicles, which takes effect on April 3rd.