According to reports, Walmart is appealing to Chinese suppliers to lower prices because they fear that President Trump's tariffs will inflate costs.
Asian companies were pushed back later Big-Box retailer asked some suppliersPeople familiar with the issue at Bloomberg will be able to cut prices as much as possible, including kitchenware and clothing manufacturers, in order to cut prices by as much as 20%.
According to the report, consultations are held by several manufacturers, and the price reductions requested are changing from company to company.
Few people agreed to a major price cut, saying Chinese suppliers would be forced to place Trump's tariffs on them.
“Like we've done in the past, we'll continue to work with our suppliers to maintain prices as much as possible for our customers,” a Walmart spokesperson posted in a statement.
“In the meantime, we are encouraging all stakeholders to work towards protecting consumers from price hikes and finding a common foundation that will continue to grow the economy.”
Walmart declined to comment on reports that it was asking its Chinese suppliers to lower prices.
Most Walmart suppliers already operate with thin margins to allow retailers to sell their products at affordable prices.
A reduction in prices by more than 2% will result in losses for some of these suppliers, sources told Bloomberg.
Meanwhile, vendors are considering switching to Vietnam for cheaper parts as the vendors cut prices by more than 3% since rejecting requests from some of these Chinese suppliers, sources told Bloomberg.
Trump's aide has increased the likelihood previously Imposing customs duties on Vietnamaccording to a Reuters report. The country responded by agreeing to support the US deportation request within a 30-day tough time frame, the report said.
Retailers have been rushing to prepare for the price impact this week after Trump imposed strict 25% tariffs on Canada and Mexico and a 20% tax in China.
In his speech Tuesday to a joint Congressional meeting, Trump said Americans “have to endure” him throughout the “adjusting period.”
That day, Target CEO Brian Cornell warned that shoppers might notice high prices for fruit and vegetables in the store within a few days.
Walmart has historically had strong negotiating powers against Chinese suppliers, and has largely met historical demands for low prices, sources told Bloomberg.
However, retailers' latest demands are unusual and disputed, and manufacturers are struggling to determine whether retaining Walmart as a partner is worth the brunt of tariffs, according to a Bloomberg report.
Walmart was the first to request price cuts from Chinese suppliers after Trump imposed an initial 10% collection of goods from China in early February, sources said.
Retailers sought further cuts after Trump threatened to double taxes later that month.
Other retailers under pressure may use the same tactics. Target, for example, is discussing with vendors how to handle tariffs, Cornell said Tuesday.
Walmart has been trying to reduce its dependence on China over the past few years. the China's dependence on imports According to a Reuters report, the decline was down from 80% in 2018 to 60% in 2023.
In 2023, the company reported it Two-thirds of total product expenditure Headed towards items made, grown or assembled in the US.
