America’s largest retailers — Walmart (WMT), Target (TGT), and The Home Depot (HD) — have taken bold steps to keep their shelves stocked despite mounting pressure from steep tariffs.
According to the Chinese newspaper Ming Pao, U.S. retailers have instructed Chinese suppliers to resume shipments that were previously suspended due to the trade war.
Analysts say that either retailers are so desperate they are ready to absorb the cost of the higher tariffs themselves or they know that tariffs will be reversed.
“If accurate, this suggests that the big-box retailers anticipate (or know) that tariffs with China are likely to be quickly reset in the coming days or weeks,” said freight analyst Craig Fuller.
The move highlights just how urgently Washington and America’s largest retailers are working to prevent major supply chain disruptions.
Since Trump imposed 145% tariffs on Chinese imports in early April, cargo shipments from China to the U.S. have dropped more than 60%, according to Flexport CEO Ryan Petersen.
That slowdown isn’t isolated; it’s hitting every corner of the retail sector, Petersen said.
If the trend continues, Americans could soon face “Covid-like” shortages on grocery shelves, warned Torsten Slok, chief economist at Apollo Management.
Retail is desperately looking for lifeline
As recently as early 2022, retailers anticipated that Trump’s second term would deliver a pro-business boost to consumer spending and corporate profits.
Instead, they walked straight into a trade war where discretionary and specialty retailers have taken the biggest hit.
The S&P 500 Consumer Discretionary Sector is down more than 13% year-to-date, while specialty retail stocks have plunged 49%. By comparison, the broader S&P 500 is off just 6.5% in 2025, buoyed by a sharp rebound in late April.
Among major U.S. retailers, Walmart has emerged as the clear winner in this trade war so far.
WMT shares are up more than 5% this year, outpacing both the retail sector and the broader market, thanks to its defensive moat and booming e-commerce business.
Target hasn’t been as lucky. Despite posting strong fourth-quarter earnings in March that topped expectations, TGT shares are down more than 28% this year.
The Home Depot is off 8% in 2025, pressured by rising tariffs and a slowing housing market.
With much of its business tied to home improvement, the company remains especially exposed as interest rates climb and real estate market cools.
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