**USA**: Walmart is reportedly urging Chinese suppliers to lower prices by up to 10% as it grapples with tariffs initiated by President Trump. Despite the pressure, many suppliers resist adjustments due to already slim margins and the financial stress from the imposed duties.
Walmart, the American retail giant, is reportedly pressuring several of its Chinese suppliers to implement significant price reductions. According to a report from Bloomberg News, the requests come in light of the tariffs imposed by President Donald Trump and suggest that Walmart is attempting to shift the financial burdens associated with these tariffs onto the suppliers.
The demand for price cuts ranges up to 10% for certain products, including kitchenware and clothing. This push for lower prices is seen as an effort by Walmart to protect its competitive advantage while also managing the financial implications of the tariffs. However, the response from the suppliers has been largely negative, with many firms in China resisting these reductions. Those suppliers are already operating on minimal profit margins due to Walmart’s historical strategy of keeping procurement costs low.
The initial request for price adjustments from Walmart occurred shortly after the introduction of the first round of tariffs on Chinese goods in early February. This was followed by a second request for additional cuts shortly thereafter, coinciding with Trump’s threats to double the existing duties on imports from China.
Walmart has not yet provided comments regarding the ongoing situation in relation to the tariffs and supplier negotiations. Additionally, in the previous month, the company issued forecasts for its sales and profits for the current year that fell below market expectations, attributing this caution to the complexities of navigating an unstable geopolitical environment, particularly in regard to high-interest rates and the impact of the tariffs imposed by the Trump administration.
Source: Noah Wire Services
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