Superstore CEOs Urged Trump to Back Off Tariffs or 'Shelves Would Be Empty' Before Revealing Possibility of China Trade Talks: Report

Top U.S. retail executives warned President Donald Trump that his aggressive tariff policies could lead to empty store shelves and price hikes, prompting him to dial back rhetoric and hint at renewed trade negotiations with China.

In recent weeks, Trump has escalated his combative economic approach, targeting both the Federal Reserve and China with threats of sweeping policy changes. In light of rising inflation and growing concerns about a potential recession, the president's hardline stance on tariffs—especially the 145% rate on some Chinese goods—sparked anxiety among business leaders and rattled financial markets.

On Monday, the CEOs of Walmart, Target and Home Depot reportedly met privately with Trump to express urgent concerns over the impact of his tariffs, sources told Axios. They cautioned that supply chains were already under strain and warned that product shortages could be seen within two weeks if policies weren't adjusted.

"The big box CEOs flat out told [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 official familiar with the meeting told the outlet.

At the same time, markets dropped sharply, reacting to Trump's comments about possibly removing Fed Chair Jerome Powell.

By Tuesday, Trump had significantly softened his stance. Treasury Secretary Scott Bessent and other officials alluded to trade talks with China being on the horizon, suggesting the possibility of a reduced tariff agreement.

Trump himself told reporters he had "no intention" of firing Powell, contradicting previous speculation. These moves calmed investor nerves, triggering a sharp rebound in stocks and a surge in the U.S. dollar.

White House aides insisted Trump's change in tone wasn't a retreat but a strategic pivot to bring China to the negotiating table. Despite Trump's public confidence, polls now show more Americans disapprove of his economic leadership than ever before.

Originally published on Latin Times