Walmart Pressures Chinese Suppliers To Cut Prices Amid New Tariff Battle

Walmart Inc WMT remains engaged in canvassing Chinese suppliers to slash prices across product categories by up to 10% for each round of tariffs. That’s how the retailer aims to shift the burden of tariffs onto the suppliers.

The ongoing negotiations could intensify after Trump launches new reciprocal tariffs against major US trading partners, adding to the 20% duties that Trump has already implemented on Chinese imports, Bloomberg reports.

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Some Chinese manufacturers failed to meet Walmart’s demands to cut prices by up to 10% for each round of tariffs.

A Walmart spokeswoman told Bloomberg its supplier conversations focused on offering low prices.

Other US retailers expect the tariffs to increase prices, from Target Corp TGT to Costco Wholesale Corp COST.

Some Chinese factory owners told Bloomberg that they have begun to weigh alternative manufacturing locations in Asia, such as Cambodia and Vietnam.

Walmart’s strong foothold in China provides some buffer from political retaliation when global businesses lay off staff on the mainland or exit the market altogether.

In March, Walmart CEO Doug McMillon sparked concerns about consumer spending in recent public comments. He highlighted that consumers are buying smaller pack sizes and running out of money.

On March 27, Walmart’s stock price fell by 3.1% at market close, leading to a sharp decline in its market value to nearly $680 billion. Bill Adams of Comerica Bank attributed consumer confidence to “layoff headlines, a falling stock market, and tariff fears.”

Price Action: WMT stock is up 0.73% at $89.43 at last check Wednesday.

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