Instituting an astronomical tariff rate of 145 percent against China, one of the country’s largest trading partners, has not inspired confidence from American businesses, and China is holding firm on getting Trump to back down. Tuesday’s shift from the president indicates that he is fearful of what will happen if his current approach backfires.

Chief executives of Walmart, Target and Home Depot reportedly warned Trump that supply chain disruptions would lead to empty shelves at U.S. stores in weeks.