Walmart asks China suppliers for price cuts on Trump tariffs

Walmart faces pushback as it asks Chinese suppliers to cut prices

Robert Besser
11 Mar 2025, 14:53 GMT+10

Walmart asks China suppliers for price cuts on Trump tariffs

Walmart is pressuring some Chinese suppliers to cut prices in response to President Donald Trump's imposed U.S. tariffs, but suppliers are pushing back, Bloomberg News reported this week
The U.S. retail giant has asked manufacturers in sectors such as kitchenware and clothing to lower prices by as much as 10 percent per round of tariffs, effectively passing the full cost of the duties onto them
However, few suppliers have agreed to the demand, as many already operate on tight profit margins due to Walmart’s cost-cutting procurement strategies

BENTONVILLE, Arkansas: Walmart is pressuring some Chinese suppliers to cut prices in response to President Donald Trump's imposed U.S. tariffs, but suppliers are pushing back, Bloomberg News reported this week.

The U.S. retail giant has asked manufacturers in sectors such as kitchenware and clothing to lower prices by as much as 10 percent per round of tariffs, effectively passing the full cost of the duties onto them, according to sources cited in the report.

However, few suppliers have agreed to the demand, as many already operate on tight profit margins due to Walmart's cost-cutting procurement strategies.

The retailer first requested price reductions in early February when Trump's initial round of tariffs on Chinese imports took effect. Additional cuts were sought later that month when Trump threatened to double duties, the report said.

"As we have done in the past, we will continue to work with suppliers to keep prices as low as possible for our customers," a Walmart spokesperson told Reuters.

"In the meantime, we encourage all parties to work towards finding common ground that will protect consumers from price hikes and continue to grow our economy," the spokesperson added.

Last month, Walmart issued a cautious outlook, forecasting sales and profits below expectations for the current year. The company cited high interest rates and trade uncertainties, including Trump's tariffs, as key risks to its business.

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