China’s Ministry of Commerce has held talks with Walmart after reports emerged that the U.S. retail giant requested price cuts from Chinese suppliers to offset the impact of rising U.S. tariffs.
Walmart’s Price Cut Request Sparks Controversy
According to a report from Bloomberg, Walmart has asked Chinese suppliers, including those producing kitchenware and clothing, to lower prices by as much as 10% in response to U.S. tariffs. The Chinese Ministry of Commerce responded sharply, stating that such a demand is “unreasonable” and disrupts fair competition and foreign trade order.
Tariff Pressure and Supply Chain Risks
Chinese authorities warned that Walmart’s actions could create risks of supply chain disruptions and negatively impact both Chinese and American businesses, as well as U.S. consumers. They urged companies to work together in addressing the economic challenges posed by U.S. tariffs rather than shifting the burden onto suppliers.
Tariff Escalation and Economic Impact
President Donald Trump’s latest 10% duty on Chinese goods took effect on March 4, following a similar tariff increase on February 4. Many Chinese suppliers already operate on thin profit margins, making Walmart’s pricing demands particularly difficult to absorb.
Potential Retaliation and Market Response
China’s state media suggested that further actions could be taken if Walmart does not reconsider its approach. The ongoing trade tensions continue to put strain on global supply chains and could lead to further disruptions in international commerce.