Walmart, the U.S. retail giant, is in the spotlight following reports that it asked Chinese suppliers to lower prices by up to 10% to offset the impact of U.S. tariffs. The request was directed at manufacturers of kitchenware and clothing. This move comes after U.S. President Donald Trump imposed an additional 10% duty on Chinese goods effective March 4, following a previous tariff on February 4.
China's Ministry of Commerce has reportedly engaged in talks with Walmart after learning of the retailer's request for price reductions. Walmart, known for procuring goods at substantial discounts to maintain its competitive edge, faced criticism from Chinese state media for the reported move. Most Chinese suppliers are already dealing with "razor-thin" profit margins, which makes further price cuts challenging.
Chinese state media warned that Walmart's actions "may create the risk of supply chain disruption and harm the interests of Chinese and American companies and American consumers." They also cautioned that further actions could be taken against Walmart if it fails to adjust its approach.
The reports of Walmart's request for price cuts were first made public by Bloomberg last Thursday. As tensions between the U.S. and China over trade continue to escalate, Walmart's strategy to mitigate tariff costs by requesting price concessions from its suppliers has drawn significant attention.
The introduction of tariffs by the U.S. government is part of an ongoing trade dispute between the two countries, which has seen various industries caught in the crossfire. Walmart's attempts to navigate these challenges underscore the broader impact of political decisions on global commerce.
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