It turns out all it took was a few retail executives whispering the terrifying words “empty shelves” in his ear, and suddenly Donald Trump—the man who promised to rule with an iron fist—went as soft as a warm butter sculpture at a county fair. So much for the tough-talking, chest-thumping economic warrior who was going to bend the global economy to his will.
On Monday, the CEOs of America’s retail giants—Walmart, Target, and Home Depot—gathered for what would become one of the most consequential closed-door meetings of Trump’s latest tenure. Inside sources report that the executives methodically laid out how Trump’s universal tariff scheme, particularly the punishing duties on Chinese goods, would decimate supply chains within a matter of weeks.
The about-face comes just three weeks after Trump’s grandiose April 2nd “Liberation Day” announcement, where he unveiled sweeping 10% tariffs on virtually all imported goods, with additional penalties for countries carrying trade surpluses with the United States. China responded predictably—and devastatingly—with retaliatory 145% tariffs on American exports.
Financial markets responded with an equally predictable panic. The Dow plummeted, bond yields whipsawed, and the dollar weakened substantially against major currencies. Trillions in market value evaporated almost overnight, threatening the retirement accounts and investments of the very voters Trump claims to champion.
The tariff walkback wasn’t Trump’s only economic U-turn this week. Just days after posting that Federal Reserve Chair Jerome Powell’s “termination can’t come fast enough,” the president suddenly assured reporters he had “no intention” of firing the central banker. This abrupt shift came after advisors reportedly warned that ousting Powell could trigger market chaos comparable to the trade war fallout. The constitutional questions alone—whether a president can legally remove a Fed chair—threatened to create a prolonged legal battle that would only extend market uncertainty.
For a president who built his brand on never backing down, this week’s dual reversals reveal something Trump’s critics have long suspected: his economic bluster is largely performative, a high-stakes game of chicken he’s willing to abandon the moment real consequences materialize. In this case, his advisors—particularly Treasury Secretary Scott Bessent—had to step in and clean up his mess, convincing him to tone down his rhetoric and adopt a more market-friendly approach. Meanwhile, Commerce Secretary Howard Lutnick was reportedly pushing Trump to go full throttle on tariffs, proving that the administration was as divided as ever. But in the end, none of this should surprise anyone.
Published: Apr 23, 2025 12:40 pm