Report: How trio of top CEOs warned Trump that tariffs will empty store shelves

It was a stunning change in tone for a president who has repeatedly accused China of 'ripping off' the United States. 'No, no, we're going to be very nice. They're going to be very nice, and we'll see what happens,' Trump told reporters at the White House Tuesday, suggesting that there was potential to lower the temperature in his trade war with China and substantially bring down tariffs he had imposed this month.

'We're going to live together very happily and ideally work together,' Trump said. His new public approach came hours after the president met with three CEOs whose retail companies are highly dependent on imports. They warned Monday that Trump's spate of tariffs had the potential to once again further disrupt supply chains – leading to a spike in inflation just as Trump was championing a cooling in fuel and household goods.

'The big box CEOs flat out told him [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 administration official told Axios. Attending the meeting with Trump were Walmart CEO Doug McMillon, CEO of Target Brian Cornell, and Home Depot CEO Ted Decker. All three companies provide low-cost consumer products, with prices kept down in part through imports – the system of international trade that Trump is seeking to disrupt.

All three companies also cut big checks to Trump's inauguration, which preceded the meeting by a few months. (Target gave $1 million to support inaugural festivities). The companies gushed about a 'productive meeting' after it happened but otherwise shared few details. The National Retail Federation has been warning of some of the risks imposed by tariffs.

'Small and medium-sized businesses will be disproportionately affected by the tariffs, with many saying they will have to raise prices or shut down,' the association says on its website. 'Unable to absorb the cost of increased tariffs, small business retailers would be forced to pass those additional costs along to their customers in the form of higher prices.' The group's Global Port Tracker found last week that imports at the nation's major ports was expected to 'drop dramatically' beginning next month due to the sweeping tariffs.

Walmart store data from 2023 indicated 60 percent of its shipments came from China as it moved to boost imports from India. Trump's apparent turnaround came after markets tanked Monday amid both the trade war and his repeated comments railing against Fed chair Jerome Powell – including calling him a 'major loser.'

That sparked concern on Wall Street that Trump might fire Powell, despite debate over whether he has the power to do so. Things turned around after Trump's Treasury secretary Scott Bessent started talking up the prospects of a deal with China that might ease the trade war. Markets were up again Wednesday as Trump once once again used more cooperative language, even while continuing to complain about countries 'ripping off' the U.S.

''It's going to be fair,' Trump said of a potential China deal. 'Everybody wants to be a part of what we're doing. They know that they can't get away with it any longer, but they're still going to do fine, and we're going to have a country that you can be proud of,' Trump said.

Trump yesterday said the current tariff is 'very high, and it won’t be that high. ... No, it won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero,' he said. That signaled the trade war won't any time soon – and that negotiations will continue. White House Press Secretary Karoline Leavitt said Wednesday that 18 countries had submitted proposals in trade talks. That was the same number she gave Tuesday, with still no deals being announced.

Want more stories like this from the Daily Mail? Visit our profile page and hit the follow button above for more of the news you need.