Trump on possible toy shortage: "Maybe the children will have two dolls instead of 30"

• The CEOs of Walmart, Target and Home Depot privately warned him last week about the likelihood of product shortages and price spikes.

Driving the news: "Somebody said, 'oh, the shelves are gonna be open,'" Trump told reporters Wednesday. "Well, maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of bucks more."

The big picture: His comments came amid growing concern that that the 2025 holiday shopping season will be significantly disrupted.

• Toy Association CEO Greg Ahearn told the New York Times this week that the industry is facing "a frozen supply chain that is putting Christmas at risk."
• "If we don't start production soon, there's a high probability of a toy shortage this holiday season," Ahearn said.

Zoom out: Trump argues that higher tariffs will force manufacturers to produce more goods in the U.S., creating jobs and tax revenue. But critics say it will lead to higher prices and hurt American exporters.

Reality check: "There will be a Christmas, and people will celebrate Christmas, and they will buy items, and we will sell them those items," Walmart CEO Doug McMillon told reporters earlier this month.

• "If there are higher price points, and you want to rethink its quantity, maybe that makes sense," McMillon said.

More from Axios:

• Walmart won't break out tariff costs and pledges low prices
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• Retail wipeout: Trump tariffs stoke fears of shortages and price hikes