Tariff Impact on Supply Chain, Multiple U.S. Retail Giants Meet with Trump

Retailers are facing challenges of slowing business and declining stock prices, as corporate executives seek help.

According to media reports on Monday, U.S. President Trump met with representatives of major U.S. retailers, including retail giants Walmart, Home Depot, Lowe's, and Target, at the White House. The White House did not immediately respond to the discussion content, while a spokesperson for Target stated in an email:

We had productive discussions with President Trump and our retail peers about trade prospects, and we remain committed to providing value to American consumers.

Reports indicate that Trump's tariff policies have largely caused supply chain disruptions, posing challenges to retailers that are a major driving force of the U.S. economy. U.S. businesses have warned that as import taxes are implemented, business may slow down in the coming months. Although companies have been operating under tariffs for years, the scale and rapidly changing nature of Trump's taxes have become a unique issue.

Since the announcement of the so-called reciprocal tariffs, the stock prices of retail giants, except for Walmart, have shown varying degrees of decline.

Market Panic Under Tariff Clouds

With high price uncertainty, consumers are rushing to buy goods such as cars, electronics, and home appliances to avoid the impact of Trump's comprehensive tariffs.

According to a report from the U.S. Department of Commerce, U.S. retail sales surged 1.4% in March compared to the previous month, marking the largest increase in over two years. Auto purchases increased by 5.3% as consumers tried to avoid the 25% tariff on finished vehicles that takes effect on April 3.

Additionally, reports indicate that the uncertainty of Trump's tariffs makes it difficult for businesses to plan inventory and pricing. The 90-day pause provides temporary relief for some operators, but many businesses also warn that uncertainty about how the final tariff rates will be adjusted will bring many troubles.

As the world's largest retailer, Walmart stated that it has diversified its supply chain, with about two-thirds of its goods sourced in the U.S. Company executives indicated this month that the company is working to maintain low prices, and its procurement staff is considering the quantity of goods needed and how prices may change due to tariffs.

Target did not indicate how many of its goods are sourced overseas but previously stated that price increases due to tariffs would vary by category. Home Depot stated that more than half of its goods are sourced in North America.

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