Walmart has been pleading with Chinese suppliers to lower their prices as it fears President Trump’s tariffs will inflate costs, according to a report.
Asian firms have pushed back after the big-box retailer asked some suppliers, including kitchenware and clothing manufacturers, to slash their prices as much as 20%, people familiar with the matter told Bloomberg.
The talks have been held with several manufacturers, and the requested price reductions have varied from firm to firm, according to the report.
Few have agreed to the hefty price cuts, which would force the Chinese suppliers to shoulder the burden of Trump’s tariffs, Bloomberg said.
“As we have done in the past, we will continue to work with suppliers to keep prices as low as possible for customers,” a Walmart spokesperson told The Post in a statement.
“In the meantime, we encourage all parties to work towards finding common ground that will protect consumers from price hikes and continue to grow our economy.”
Walmart declined to comment on reports that it was asking Chinese suppliers to lower prices.
Most of Walmart’s suppliers already operate on thin margins to allow the retailer to sell goods at affordable prices.
Lowering prices by more than 2% would result in a loss for some of these suppliers, sources told Bloomberg.
Meanwhile, vendors have denied requests from some of these Chinese suppliers to cut their prices more than 3%, so manufacturers are considering turning to Vietnam for cheaper parts, a source told Bloomberg.
Trump aides earlier raised the possibility of imposing tariffs on Vietnam, according to a Reuters report. The country responded by agreeing to aid US deportation requests within a tight 30-day timeframe, the report said.
Retailers have been scrambling to prepare for the impact on prices after Trump this week imposed stiff 25% tariffs on Canada and Mexico, as well as a 20% levy on China.
During his Tuesday address to the joint session of Congress, Trump said Americans will have to “bear with” him through an “adjustment period.”
Earlier that day, Target CEO Brian Cornell warned that shoppers may notice higher prices on fruits and vegetables in stores within the next few days.
Walmart has historically had strong bargaining power over its Chinese suppliers, and past requests for lower prices have largely been met, sources told Bloomberg.
But the retailer’s latest request is unusual and outsize, leaving manufacturers struggling to decide whether holding onto Walmart as a partner is worth bearing the brunt of the tariffs, according to the Bloomberg report.
Walmart first requested a price reduction from Chinese suppliers after Trump imposed an initial 10% levy on goods from China in early February, sources said.
The retailer asked for more cuts after Trump threatened to double the taxes later that month, according to the report.
Other retailers under pressure may use the same tactic. Target, for example, has been having discussions with vendors about how to handle the tariffs, Cornell said on Tuesday.
Walmart has been trying to reduce its dependence on China over the past few years. Its reliance on Chinese imports dropped to 60% in 2023 from 80% in 2018, according to a Reuters report.
In 2023, the company reported that two-thirds of its total product spend went toward items made, grown or assembled in the US.
