American retailers are increasingly concerned that US President Donald Trump's trade war and growing instability will lead to empty shelves, rising prices and store closures as imports from China effectively come to a halt. This is reported by Axios, writes UNN.
Details
The CEOs of Walmart, Target and Home Depot warned Trump at a private meeting last week about likely disruptions in the supply of goods and price spikes.
President Trump acknowledged that toy shortages are possible as his tariff increases affect the economy.
"Someone said, 'Oh, the shelves will be empty,'" Trump told reporters on Wednesday. "Well, maybe the kids will have two dolls instead of thirty, and maybe those two dolls will cost a couple of dollars more."
His statement comes amid growing concerns that the 2025 holiday shopping season will be significantly disrupted.
Toy Association CEO Greg Ehern told the New York Times this week that the industry is facing a "frozen supply chain that puts Christmas at risk."
"If we don't start production in the near future, it is very likely that there will be a shortage of toys this holiday season," Ehern said.
Addition
Trump argues that raising tariffs will force manufacturers to produce more in the US, creating jobs and tax revenue. But critics say it will lead to higher prices and hurt American exporters.
"Christmas will be, and people will celebrate Christmas, and they will buy things, and we will sell them these things," Walmart CEO Doug McMillon said earlier this month.
"If prices are higher, and you want to review the quantity of goods - maybe that makes sense," he added.