During earnings calls for the first quarter of the year, executives of major American companies, including Walmart, Home Depot, Costco, Dollar Tree, and others expressed continued skepticism about Donald Trump’s disastrous economy. Executives pointed to declining consumer sentiment, noting that consumers are cutting back on spending because of high prices under Trump, and warned that prices will continue to climb amid Trump’s reckless trade war and his unpopular war of choice with Iran. 

Core inflation in April surged to 3.8%, the highest level in years, and first-quarter GDP growth was revised down from 2.0% to 1.6%. Meanwhile, consumer sentiment recently dropped to its lowest level ever recorded for the second month in a row — lower than during the Great Recession in 2008 and the COVID-19 pandemic.

Here’s what business executives told their investors during their Q1 earnings calls: 

Companies raised concerns about Trump’s war with Iran and warned of even higher inflation in the coming months. 

Walmart CFO John David Rainey: “[T]hese are real impacts to the cost of goods sold for us and our suppliers. If the current elevated cost environment persists, we’d expect somewhat higher retail price inflation in Q2 and the second half of the year.”

Dollar Tree CFO Stewart Glendinning: “When we spoke to you last quarter, there was an expectation, I think, of a shorter period of impact related to the conflict in the Middle East, that has proved not to be the case. Now we’re assuming that the higher fuel prices last throughout the year, since we don’t know when that conflict will end.”

Executives highlighted rapidly declining consumer sentiment, as gas prices soar and Americans cut back on spending to make ends meet. 

Dollar Tree CEO Mike Creedon: “At the same time, we recognize the consumer environment remains dynamic, especially for lower-income households navigating higher fuel costs and broader macro uncertainty. Customers are shopping thoughtfully and closer to need, with a continued focus on affordability, convenience, and trip efficiency.”

Kohl’s CFO Jill Timm: “We continue to see choiceful discretionary spending from our core low to middle income consumer as they remain financially pressured.”

Kohl’s CEO Michael Bender: “[Low to middle income consumers] continue to seek value in an attempt to stretch their dollars for themselves and their family when more of their money is being spent on essentials like food and gas.” 

Walmart CFO John David Rainey: “We have a large fuel business, and we see that in the most recent period, the number of gallons that customers fill up with when they come to our fuel stations fell below 10 for the first time since 2022. That’s an indication of stress.”

Companies expect Trump to continue to double down on his tariffs, warning of greater economic uncertainty and even higher prices. 

Dollar Tree CFO Stewart Glendinning: “Consistent with last quarter, we are assuming that the current tariff rates remain in place through July and then increase in the back half of the year to the levels predating the February 20, Supreme Court decision.”

Lowe’s CFO Brandon Sink: “We are continuing to work through, I think, the tariff environment. I mentioned the fuel, the renewed round of inflation, all very fluid.”