A high-stakes meeting unfolded at the White House on Monday as President Donald Trump sat down with the CEOs of America’s largest retailers — Target’s Brian Cornell, Walmart’s Doug McMillon, and Home Depot’s Ted Decker — to talk tariffs, trade, and the threat looming over the American consumer.

The private meeting, described as “productive” by Target officials, centered on Trump’s controversial tariff policy, particularly the steep 145% levy on Chinese goods already rattling the retail sector. While specifics of the conversation remain under wraps, the CEOs collectively stressed the importance of protecting consumer value and ensuring economic stability.

Retail Under Pressure

With roughly half of its merchandise imported, Minneapolis-based Target is among the most vulnerable to these policy shifts. According to Rick Gomez, the company’s chief commercial officer, 30% of Target’s owned-brand items still originate in China — down from 60% in 2017. Although the company has actively worked to diversify its supply chain — shifting production to countries like Honduras and Guatemala — tariffs continue to squeeze margins and unsettle shoppers.

The ripple effects are already visible. Foot traffic to Target stores fell by 4.7% during the week of April 7, according to Placer.ai. Walmart, meanwhile, experienced a modest 2.7% year-over-year increase. Analysts attribute much of Target’s dip to a mix of inflationary pressures, tariff uncertainty, and broader concerns about the U.S. economy under Trump’s renewed trade strategy.

“Massive Undertaking”

David French, the executive vice president of government relations at the National Retail Federation, emphasized the operational strain tariffs place on companies: “Planning for tariffs is a massive undertaking. It requires both advance notice and substantial preparation.”

Target’s executives have acknowledged this burden, noting in their latest earnings call that they are negotiating with suppliers to mitigate cost increases for consumers. However, the company has already forecasted flat comparable sales and shrinking profit margins for the current fiscal year.

Discretionary Spending Dilemma

Target’s product mix makes it particularly sensitive to consumer sentiment. Nearly 60% of its sales come from nonessential items like beauty products, clothing, and home décor — the first to be slashed when households feel financially strained.

And there are internal challenges. Beyond economic headwinds, Target is grappling with inventory issues, staffing shortages, and questions about in-store cleanliness. These operational hiccups, when combined with the macroeconomic picture, make for an uncertain future.

Beyond Trade: Social Backlash

In a separate but equally charged arena, CEO Brian Cornell recently met with civil rights activist Rev. Al Sharpton to discuss Target’s rollback of diversity, equity, and inclusion (DEI) initiatives. The decision, made in January, sparked backlash and boycott threats, adding another layer of complexity to Cornell’s leadership challenges.

The Road Ahead

While Monday’s meeting signals a willingness to find common ground, the retail sector is bracing for a rocky road. As companies like Target juggle global sourcing, shifting policies, and evolving consumer expectations, their ability to adapt — and influence Washington — will be tested like never before.

For now, shoppers may not see the price tags change overnight, but the decisions made in D.C. this week could soon shape what’s on store shelves and how much it costs to fill a cart.