US retail giant Walmart is caught in a middle-of-the-trade war between the US and China. Chinese officials confirmed they met with executives from Walmart after the company pressured suppliers for discounts due to rising tariffs imposed by Donald Trump. The US has doubled tariffs on all Chinese imports to 20%, while China has retaliated with new tariffs on US agriculture imports.
Retailers, including Walmart, are struggling under chaotic tariff announcements that have escalated trade tensions between the world’s two largest economies. To cope with the tariffs, Walmart asked some of its Chinese vendors for significant price cuts of up to 10%. However, this move is seen as unreasonable by Chinese authorities, who warned that further action could be taken.
Walmart has a significant presence in China, having entered the market in 1996 and now operating in over 100 cities. The company’s net sales in the country rose 16% to $17 billion last year, but many businesses are struggling under Trump’s tariff announcements. With inflation already affecting customers, retailers may have to raise prices, further exacerbating the financial pressure on consumers.
Source: https://edition.cnn.com/2025/03/13/business/walmart-china-investigation-us-tariffs-intl-hnk/index.html