Biggest US retailers, Walmart and Target, meet Trump over tariffs and bad US business

According to Bloomberg, President Donald Trump held a high-level meeting with American retailers on Monday. Retail businesses are grappling with the economic downturn caused by tariffs. Walmart Inc., Target Corp., Home Depot Inc., and Lowe’s Cos. executives were present at the White House to discuss alleviating trade tensions.

The gathering came after a 90-day pause in Trump’s implementation of levies on imports from several trading partners, a window that foreign leaders and US corporations alike are using to renegotiate more favorable trade conditions. 

Retailers seek Trump’s help in unstable trade climate

Retailers have been some of the hardest hit by Trump’s trade policies, particularly due to their reliance on global supply chains. The White House has not issued an official statement on what was discussed, but representatives from several participating companies described the meeting as constructive.

A spokesperson for Target confirmed that the company had a “productive meeting” with the US president and reiterated that the company would maintain value for American consumers. Walmart and Home Depot also gave the same sentiments and promised to continue the conversation with the administration. 

The Trump administration’s tariffs have affected several goods retailers sell in their stores, including metals, electronics, clothing, and household furnishings. Executives say the pause-play-pause import levies from Trump have made it difficult to manage inventory and set pricing strategies.

Walmart, for instance, has said it sources roughly two-thirds of its merchandise domestically but still relies on imports for specific product segments. The company is taking steps to contain costs and adjust to potential price fluctuations. 

Shares of the companies involved in Monday’s White House meeting briefly ticked upward after news of the talks, but the day closed with Walmart, Home Depot, and Lowe’s still in the red. Target ended the session up slightly, gaining less than 1%.

Surge in shopping sales pre-tariff

According to a report from the Commerce Department, US retail sales jumped 1.4% in March compared to the previous month, the largest increase in over two years. The sales exceeded the Dow Jones estimate of 1.2% growth for the month.

Auto sales surged by 5.3% as buyers rushed to purchase vehicles before a 25% tariff on finished cars took effect on April 3. Building and garden supply stores also saw a strong performance, with sales rising 3.3%, while food and beverage service providers recorded a 1.8% increase.

“These are simply blowout numbers on March retail sales,” said Chris Rupkey, chief economist at FWDBONDS. “The rush is on like this is one gigantic clearance sale.” 

Though the figures precede Trump’s announcement and subsequent pause on additional tariffs, they show that the general public is anxious about price hikes on everyday items.

Home Depot indicated that more than half of its inventory is sourced from within North America, an advantage that may shield it somewhat from the worst tariff impacts.

Speaking during the company’s March earnings call, weeks before President Donald Trump imposed additional levies, Best Buy CEO Corie Barry said tariffs would inevitably lead to higher prices for consumers.

“Tariffs at this level will result in price increases,” Barry told analysts, adding that it was difficult to quantify exactly how steep those increases would be in such a volatile economic climate.

According to the University of Michigan, sentiment fell 11% in April, the fourth consecutive monthly decline. Since December 2024, consumer sentiment has plunged more than 30%.

For Trump, who has publicly stated a willingness to negotiate with both international allies and domestic corporations, the meeting with retail executives gave him a window to cool down the jitters and say he is willing to be flexible to their pleas. 

“You have to show a certain flexibility. Nobody should be so rigid,” the POTUS surmised in a press conference earlier this month.

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