The ongoing trade war between the United States and China has put Walmart in a difficult position as new tariffs imposed by former U.S. President Donald Trump take effect.
Chinese officials confirmed on Thursday that they had met with executives from the American retail giant following reports that Walmart had pressured its suppliers in China for discounts to offset the financial burden of rising tariffs.
“Our relevant departments have reached out to Walmart to further understand the situation, and the company has provided an explanation,” said He Yongqian, a spokesperson for China’s Commerce Ministry, during a regular press briefing. However, no additional details were disclosed.
Last week, Trump announced a tariff increase on all Chinese imports, doubling them to 20%. In response, China swiftly retaliated with new tariffs targeting U.S. agricultural products, which came into effect on Monday.
As trade tensions continue to rise between the world’s two largest economies, many businesses are feeling the strain. Retailers have expressed concerns about potential price hikes, as higher costs are passed on to consumers already grappling with inflation and economic uncertainty.
According to Bloomberg, Walmart has attempted to mitigate the impact by requesting price cuts of up to 10% from some of its Chinese suppliers. The move underscores the financial pressure companies face as they navigate shifting trade policies and supply chain disruptions.
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