US retail CEOs are expressing calmness about President Donald Trump’s tariff policies, despite dire warnings from other business leaders. The CEOs cite diversified supply chains and previous experience weathering tariffs as reasons for their optimism.
In recent earnings calls, Walmart CEO Doug McMillon said “tariffs are something we’ve managed for many years” and expects no significant impact on the company. Home Depot CEO Ted Decker echoed this sentiment, stating that his team has “the best ability to manage through any tariff environment.”
Target’s Brian Cornell also expressed confidence in the company’s ability to navigate tariffs, saying it has “managed through tariffs in the past.” The retail industry has spent the past decade diversifying its supply chains, with companies like Abercrombie & Fitch and Gap expanding their sourcing to countries such as Vietnam and Bangladesh.
However, not all retailers are feeling calm. Best Buy CEO Corie Barry warned that even indirect imports could be affected by tariffs, leading to price increases for consumers. Grocery executives at Kroger also expect prices on fresh food like lettuce to rise due to increased tariffs on imported items from Mexico.
Despite the calm demeanor of retail CEOs, Wall Street’s recent selloff suggests that trade wars could lead to economic recession. The National Retail Federation estimates that consumer spending power could fall by $46 billion to $78 billion per year if tariffs remain in place. As one executive noted, “the potential consumer demand that’s across the board based on how tariffs ripple across the economy” is a key uncertainty for retailers.
Source: https://fortune.com/2025/03/10/trump-tariffs-retail-ceos-react-soun-calm-walmart-gap-target-home-depot