Walmart, Target executives to meet Trump as tariff angst spreads

Walmart, the world’s largest retailer, has said it operates a diversified supply chain and that it sources about two-thirds of items in the U.S. Executives said this month that the company is working to keep prices low. Photo by Justin Sullivan/Getty Images/Postmedia files

Article content

President Donald Trump is set to meet with major retailers at the White House, as business executives seek relief from sweeping tariffs that have destabilized global supply chains and rattled United States consumers.

Article content

Article content

The Monday meeting includes representatives from Walmart Inc., Home Depot Inc., Lowe’s Cos. and Target Corp., according to people familiar with the plans. The discussion comes amid a 90-day pause in Trump’s higher tariffs on trading partners except China that dozens of foreign leaders and business executives are using to negotiate better terms.

Article content

Article content

Home Depot said it works with administrations from “both sides of the aisle” and that it will keep meeting with leaders at all levels of government. Target had no immediate comment. Lowe’s did not respond to a request for comment. Walmart declined to comment.

Article content

Article content

Disruptions caused in large part by Trump’s tariffs have posed challenges for retailers that are a main driver of the U.S. economy. A selloff in U.S. assets deepened Monday amid tariff anxiety and Trump’s threats against Federal Reserve Chair Jerome Powell. Shares of the companies ticked up after news of the meeting, but all remained down for the day.

Article content

American companies have warned that business could slow in the months ahead as the import taxes go into place. While companies have operated with tariffs for several years, the magnitude and fast-changing nature of Trump’s levies have become a unique problem.

Article content

Article content

Trump’s duties on nearly all trading partners and a litany of sectors, including metals, are threatening to increase prices on everything from spirits and apparel to electronics and furniture. Those changes are expected to further hamper consumer demand, as Americans have already been price-sensitive following years of inflation.

Article content

Article content

In addition to the cavalcade of overseas officials seeking lower tariffs, Trump has indicated he would be open to negotiating on rates with corporate leaders.

Article content

Article content

“We’ll also talk to companies. You know, you have to show a certain flexibility. Nobody should be so rigid,” the U.S. president told reporters on April 13.

Article content

Uncertainty around Trump’s tariffs have made it difficult for businesses to plan inventory and pricing. The 90-day pause has given some operators a temporary relief, though many have warned of the complications that come with not knowing where duty rates will end up.

Article content

Americans have been rushing to purchase items like cars, electronics and appliances before Trump’s levies take full effect, according to economic data. U.S. retail sales surged 1.4 per cent in March from the previous month, the biggest jump in more than two years, according a Commerce Department report. Auto purchases increased by 5.3 per cent as buyers sought to avoid 25 per cent tariffs on finished vehicles that went into place on April 3.

Article content

The March data captured spending before Trump announced, then subsequently paused high tariffs on nations across the world, and before he hiked levies on many Chinese goods to 145 per cent. But the report offers insight on consumers’ mindset at a time of high uncertainty about future prices.