Walmart has requested that some Chinese suppliers cut their prices by up to 10% in response to the US tariffs, according to reports. This move is aimed at offsetting the impact of the Trump administration’s tariffs on its imports. The company has been diversifying its supply chain but remains reliant on Chinese imports for discretionary items like clothing and electronics.
Chinese officials have warned Walmart about potential legal issues over price cuts, citing concerns that such actions could violate contracts and disrupt market order. However, analysts believe Walmart is well-positioned to handle the economic environment due to its scale and ability to maintain low prices, particularly in the grocery sector.
The company’s CFO, John David Rainey, has expressed concern about the potential impact on American consumers’ wallets but remains optimistic about navigating the tariff situation. The meeting between China’s commerce ministry and Walmart representatives is seen as an effort to address the issue and find a solution that works for both parties.
Source: https://www.reuters.com/business/retail-consumer/chinas-commerce-ministry-met-with-walmart-supplier-pricing-state-media-says-2025-03-12