Executives from Walmart, Target and Home Depot this week ventured to the White House to discuss tariffs, which all three described in general terms as constructive.
“We had a productive meeting with President Trump and our retail peers to discuss the path forward on trade, and we remain committed to delivering value for American consumers,” Target spokesperson Jim Joice said by email.
The parley took place as retailers steadily work through their pretariff inventories. Some are beginning to view tariffs as an incoming “holiday tax,” given that many of the levies will first be applied to goods put on shelves for the back-to-school, Halloween and Q4 holidays.
Monday’s gathering at the White House was the most high-profile action to-date from the industry over the ever-changing levies, involving just three companies. The National Retail Federation didn’t immediately return messages asking whether the group has met or plans to meet with members of the administration.
It’s encouraging to see businesses communicate directly with the president, and not just through trade groups, according to Charlie Skuba, faculty emeritus at Georgetown University’s McDonough School of Business.
“He needs to hear from the companies who sell everyday household products to American consumers and learn from them about the effects of both announced and potential tariffs,” Skuba said by email. “The President needs to hear from them about the realities of product sourcing, importing, and inventory and the difficult, real-world decisions that retailers need to make to minimize the consumer pricing impact of tariffs on consumers while maintaining margins.”
Officially, the NRF says on its site that “retailers are committed to working with President Trump and his administration” and that tariffs are “just one tool in the toolbox.” But the group is also critical of many aspects of the trade policy.
“The sweeping ‘reciprocal’ tariffs announced by the administration cannot — and should not — be implemented without congressional consultation and oversight,” the group said in a statement. “We urge lawmakers to work with the White House over the next 90 days to scale back these tariffs and pursue a clear, consistent trade policy that puts American businesses, workers and consumers first — not last.”
In their most recent earnings calls, top executives from several publicly traded retail companies sought to calm investor concerns about the impact of tariffs by emphasizing their supply chain diversity and their past success in navigating the import duties from the first Trump administration. Many also acknowledge the uncertainty and the possible need to raise prices.
President Trump himself in the Oval Office on Wednesday acknowledged that the various tariffs placed on Chinese imports, amounting to 145%, are “very high” and impeding trade, and clarified that those duties have not been lowered.
“So when you add that to the price of a product, you know, a lot of those products aren’t going to sell,” he told reporters.
Walmart and Target have pledged to work to keep prices low despite the added costs of importing goods; earlier this month, Walmart said those efforts would help it gain share but could squeeze margins. On Thursday, Target also reiterated its commitment to value.
The uncertainty around tariffs continues, with China’s Foreign Ministry Spokesperson, Guo Jiakun, contradicting reports that the U.S. and China are working toward an agreement.
“None of that is true. For all I know, China and the U.S. are not having any consultation or negotiation on tariffs, still less reaching a deal,” he said, according to the China Foreign Ministry’s official transcript. “This tariff war is launched by the U.S. China’s position is consistent and clear: We will fight, if fight we must. Our doors are open, if the U.S. wants to talk. Dialogue and negotiation must be based on equality, respect and mutual benefit.”