Here's why President Donald Trump suddenly softened some of his most severe rhetoric on tariffs, the reasons could be worrying for Americans

The United States president Donald Trump has suddenly opted a gentler approach to tariffs and trade negotiations because the country's largest retail chains' CEOS warned him that prices of goods would increase along with extreme scenario of even empty shelves in stores, as per a report.

Retail Industry Concerns

According to Axios, the chief executives of retail giants like Walmart, Target, and Home Depot had a meeting with the US president on Monday and cautioned him that although prices were steady currently, his trade policies could have severe impacts within just two weeks as supply chains would get disrupted.

A source told Axios, “This wasn’t about food. But he was told that shelves will be empty,” quoted DailyBeast.


Trump was also concerned after seeing investors’ reaction to his threats to fire Fed Chair Jerome Powell as stocks, bonds, and the dollar all fell this week, as per DailyBeast.

Donald Trump Softens Tariff Talk

During a press meeting on Tuesday, Trump said he did not plan to play hardball with China, and that he was confident that both the countries could strike a deal that would bring the tariffs well below their current levels, reported DailyBeast.

The US presidnet also clarified that he had “no intention” of firing Powell, after his top economist, Kevin Hassett, had told last week that Trump and his team were considering how to do so, as per the report.

Treasury Secretary Emerges as Key Voice

The shift in Trump's tone can be attributed to Treasury Secretary Scott Bessent, who has been working behind the scenes to guide Trump toward a more measured, market-friendly policy, as per Axios.

FAQs

Why did President Trump suddenly change his tone on tariffs?
Retail CEOs warned him that continued trade policies could lead to empty shelves and price hikes in stores within weeks.

Did Trump plan to fire Powell?
According to Hassett, the adminstration was looking into it, but Trump later denied any intention of doing so.