President Trump eased his stance on tariffs and the Federal Reserve after pressure from major retailers and a drop in the markets.
Executives from Walmart, Target and Home Depot warned that continued tariff escalation could quickly lead to empty shelves and higher prices for consumers — potentially within a matter of weeks.
After hearing those warnings and seeing market losses, Trump softened his public rhetoric. He indicated a willingness to pursue trade talks with China that could result in reduced tariffs and stepped back from earlier threats to remove Federal Reserve Chair Jerome Powell.
White House officials portrayed the shift as a tactical move in ongoing negotiations rather than a sign of weakness. Still, the president faces falling economic approval ratings as voters grow more worried about inflation, slowing growth and the risk of a recession.