China Confronts Walmart Over Supplier Price Cut Demands
Chinese officials held talks with Walmart after reports surfaced of the retailer pressuring suppliers to absorb U.S. tariff costs through price reductions.
- Chinese authorities met with Walmart representatives on March 11 to address the company's reported demands for price cuts from local suppliers.
- Walmart has allegedly asked Chinese manufacturers, including kitchenware and clothing suppliers, to reduce prices by up to 10% per round of U.S. tariffs.
- The U.S. recently raised tariffs on Chinese goods to 20%, with Walmart reportedly seeking to shift the financial burden onto suppliers.
- Chinese state media warned that Walmart's actions could disrupt supply chains and harm both Chinese and American businesses and consumers.
- The China Chamber of Commerce for Import and Export of Textiles has called for fair resolution of trade issues and is investigating similar complaints from its members.