Retail Giant’s CEO Meets with President-Elect to Discuss Industry Concerns
As the nation prepares for a new administration, top executives from various industries are meeting with President-elect Donald Trump to discuss their concerns and priorities. Among them is Doug McMillon, CEO of Walmart, the largest retailer in the United States.
A Meeting of Minds at Mar-a-Lago
On Tuesday, McMillon sat down with Trump at his Mar-a-Lago estate, just two weeks before the president-elect takes office for the second time. This one-on-one meeting marks one of many discussions between Trump and prominent business leaders, including Meta cofounder Mark Zuckerberg, Pfizer CEO Albert Bourla, and TikTok CEO Shou Zi Chew.
A Familiar Face in the Business Community
McMillon, who has led Walmart since 2014, has a history of working with Trump’s administration. He previously served on an advisory council and a special task force in response to the COVID-19 pandemic. According to a Walmart spokesperson, McMillon “enjoyed reconnecting with President Trump on a range of topics” and had a “great conversation.”
Tariffs Top of Mind for Retailers
As the largest retailer in the country, Walmart employs over 1.6 million workers in the US and sets the tone for the industry. One of McMillon’s top concerns is the impact of potential tariffs, which could elevate costs and affect the company’s profit margins. Trump has proposed a range of new tariffs, including a 10% tariff on all imports and 60% on Chinese imports, to reduce the trade deficit.
Managing Tariffs and Keeping Prices Low
McMillon has experience dealing with tariffs, having navigated them successfully during Trump’s first administration in 2017. However, he worries about the potential impact on customers, who may face higher prices. “We’re positioned to manage it, but what I worry about is customers experiencing higher prices, and we’re going to do everything we can to try and keep them low,” he stated.
Encouraging Strategic Decision-Making
As McMillon meets with leaders, he plans to encourage them to be thoughtful and strategic in their decision-making regarding tariffs. He believes it’s essential to understand the math behind these policies and their potential consequences.
Walmart’s Global Supply Chain
The retailer’s global supply chain is a significant factor in its operations, with 80% of its non-food goods coming from the Asia Pacific and international regions. This makes tariffs a critical concern for the company.
A Successful Year for Walmart
Despite the challenges, Walmart has had a remarkable year, with its shares rising over 70% and outpacing the S&P 500’s nearly 24% gain. This success has earned the company the title of 2024 Company of the Year.
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