Walmart Inc. has asked some Chinese suppliers for major price reductions, with the US retail giant’s efforts to shift the burden of President Donald Trump’s tariffs facing strong push back from firms in the Asian nation, according to people familiar with the matter.
Walmart has requested significant price reductions from Chinese suppliers to offset costs resulting from U.S. tariffs on Chinese imports. Suppliers, already facing thin margins, are resisting further cuts, with some refusing to reduce prices beyond 3%. This has led Walmart to explore alternative sourcing options, such as Vietnam. Concerns about potential quality declines due to cost-cutting measures have emerged. Walmart emphasizes its commitment to maintaining low prices for customers and working collaboratively with suppliers. The situation underscores the broader impact of tariffs on global supply chains and the potential for increased consumer prices.
