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US firms warn Trump's tariff chaos could give rise to empty shelves, higher prices

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China

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US firms warn Trump's tariff chaos could give rise to empty shelves, higher prices

2025-04-25 13:54 Last Updated At:17:07

U.S. retailers and other major companies expressed worry that the so-called "reciprocal tariffs" on all U.S. trading partners threatened by U.S. President Donald Trump's administration could cause major disruption and revenue loss.

Trump on Wednesday said he may soon re-instate the "reciprocal tariffs" following weeks of delay.

According to a report by U.S. outlet Axios, three of U.S. biggest retailers -- Walmart, Target and Home Depot -- warned the Trump administration in a meeting that the policies could lead to severe negative impacts, including shortages and price hikes.

The CEOs of the retailers held private discussions with Trump on how to alleviate the destructive influence of the tariff policies on the global supply chain and soothe the unease of American consumers.

The executives were straightforward in telling the president that his tariffs would disrupt the supply chain and even lead to empty shelves, according to the Axios report.

Meanwhile, due to the uncertainties brought by U.S. tariffs to the global economy, several large U.S. companies have adjusted their expectations on revenue and profit.

World-leading American consumer goods corporation Proctor and Gamble projected that its all-in sales for fiscal 2025 would total roughly equal to the previous fiscal year, which is much lower than its previous two-to-four-percent growth target, according to the company's press release on Thursday.

The company also noted that the expenditure of American consumers has already significantly dropped in February and March.

Global toy giant Hasbro issued early warnings in the company's earnings call that if the U.S. government continues the current tariff policies, it will suffer a loss of 300 million U.S. dollars in 2025.

On Thursday, American Airlines lowered its 2025 financial forecast. CEO Robert Isom said the uncertainties of U.S. economy could impact non-essential spending on travel, and the results for the first and second quarters suffer as a result.

US firms warn Trump's tariff chaos could give rise to empty shelves, higher prices

US firms warn Trump's tariff chaos could give rise to empty shelves, higher prices

US firms warn Trump's tariff chaos could give rise to empty shelves, higher prices

US firms warn Trump's tariff chaos could give rise to empty shelves, higher prices

The central parity rate of the Chinese currency renminbi, or the yuan, weakened 14 pips to 7.0078 against the U.S. dollar Friday, according to the China Foreign Exchange Trade System.

In China's spot foreign exchange market, the yuan is allowed to rise or fall by 2 percent from the central parity rate each trading day.

The central parity rate of the yuan against the U.S. dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

Chinese yuan weakens to 7.0078 against USD Friday

Chinese yuan weakens to 7.0078 against USD Friday

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