Walmart is continuing to pressure Chinese suppliers to shoulder the costs of President Trump’s tariffs – even after state officials gave the retailer’s executives a dressing-down last month over their demands, according to a report.
The world’s largest retailer is still pushing overseas suppliers to cut their prices by as much as 10%, essentially taking on the burden of the new taxes, people familiar with the matter told Bloomberg.
Walmart did not immediately respond to The Post’s request for comment.
A spokesperson for the retailer told Bloomberg that the company’s conversations with suppliers are all aimed at delivering lower prices to customers.
Its persistence in pushing Chinese suppliers, despite warnings from Beijing and state-affiliated media, signals the retailer is panicking over the potential price impact from Trump’s tariffs – a 20% levy on China that took effect March 4, and further taxes to be announced Wednesday that could stack on top.
Walmart is negotiating with its suppliers across product categories, not by countries, a person familiar with the matter told Bloomberg.
Some Chinese manufacturers are struggling to meet Walmart’s demands, sources said.
Facing the risk of losing access to US consumers, some factory owners say they have started to explore alternative manufacturing locations elsewhere in Asia, like Cambodia and Vietnam, according to the report.
Walmart would be a significant loss for overseas suppliers, many of which seek out the Bentonville, Ark.-based retailer as a steady partner that can be counted on for large, consistent orders.
Last month, Chinese officials summoned Walmart executives for a meeting after receiving complaints that the discount chain was pushing suppliers to absorb the costs of the tariffs, according to a source familiar with the matter. The Wall Street Journal earlier reported the news.
Authorities told Walmart representatives it would be unfair and irresponsible to make Chinese suppliers pay for the taxes, according to the Journal.
Officials even warned Walmart that asking suppliers to slash their own prices might violate contracts and disrupt market order – and referred to potential legal consequences, sources told the Journal.
State-linked social media accounts and broadcasters issued warnings around Walmart’s demands.
“If Walmart insists” on making Chinese suppliers absorb costs linked to the tariffs, “then what awaits Walmart is not just talk,” state broadcaster China Central Television said in March.
China has not expressed displeasure toward Walmart since that initial meeting, according to Bloomberg.
Walmart has a small, but growing, retail presence in China.
It operates more than 300 Walmart and Sam’s Club stores throughout the country.
Chinese consumers have been flocking to its Sam’s Club membership stores, which rival fellow warehouse store Costco.
Walmart reported about $5 billion of net sales in China in the most recent quarter, up 28% from the year before. It accounted for less than 3% of its total global revenue.
