(March 12): China summoned Walmart Inc executives on Tuesday (March 11) to express its concern after the US retailer reportedly urged its Chinese suppliers to absorb increased American trade tariffs by lowering prices.
Such a demand would potentially break the supply chain, disrupt normal market transaction orders and harm the benefits of both Chinese and American companies as well as consumers in the US, according to a post from Yuyuantantian, a Weibo account affiliated with state-run China Central Television that regularly signals Beijing’s thinking about trade.
The move marks Beijing’s effort to check American businesses from arm-twisting Chinese companies into taking the hit of President Donald Trump’s tariffs. Bloomberg reported last week that Walmart asked some suppliers for major price reductions as a way to insulate American consumers from higher levies on Chinese goods.
Trump announced doubling tariffs on goods from China to 20%, setting the stage for fresh trade and geopolitical tensions in his second term.
Companies in both countries should cooperate to deal with the increased US tariffs, according to the Weibo post. It would be “not just summon” if Walmart insists on the price cut requirements and any demand on suppliers, if true, would be bad for Walmart’s operations and developments in China, the post said.
Beijing expects large US retailers to resolve international trade issues fairly and reasonably, according to China’s Chamber of Commerce for Import & Export of Textiles. The body received complaints from its members after some US retailers asked suppliers in China to cut prices.
Walmart’s move faces resistance from Chinese exporters whose margins are already razor thin due to the US retailer’s strategy of sourcing goods at a low price to stay competitive. Its push on suppliers shows how rising geopolitical tensions are set to reshape global supply chains and pile pressure on US consumers already grappling with cost-of-living stresses.
While US Treasury Secretary Scott Bessent downplayed concerns about the tariffs, saying Chinese manufacturers will eat the extra cost, big box retailers Target Corp and Best Buy Co have warned shoppers should expect higher prices from the trade war that’s also ensnared Mexico and Canada.
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