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Walmart and China battle over retailer’s handling of Trump tariffs
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Walmart, the world’s largest retailer, recently clashed with China after asking Chinese suppliers to absorb the Trump tariffs. Beijing appeared to threaten the company after it apparently asked Chinese suppliers to slash their prices to offset the impact of the tariffs.
Chinese officials met with Walmart, which also operates its warehouse club chain, Sam’s Club, in China, to discuss the retailer’s request that suppliers absorb the tariffs. Walmart reportedly asked some of its Chinese suppliers to reduce their prices by 10%, according to Bloomberg.
The flag of China and a Walmart are shown side by side. (REUTERS/Leonhard Foeger and Joe Buglewicz/Bloomberg via Getty Images)
Officials reportedly issued a veiled threat, according to The Wall Street Journal (WSJ). The outlet added that China Central Television wrote on social media that “if Walmart insists” on having suppliers cut prices, “then what awaits Walmart is not just talk.”
WSJ also reported that “Walmart representatives said they would work with Chinese suppliers to find ways to avoid damaging the interests of the parties involved,” citing people familiar with the matter.
U.S. President Donald Trump attends a bilateral meeting with China’s President Xi Jinping during the G20 leaders’ summit in Osaka, Japan, June 29, 2019. (Reuters / Kevin Lamarque / Reuters)
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In 2023, Walmart appeared to be reducing its reliance on Chinese suppliers. According to a Reuters estimate, 60% of Walmart’s imports from January to August 2023 came from China, down from 80% in 2018. The big-box retailer, according to the outlet, began importing more goods from India.
In a call with investors last month, Walmart CFO John David Rainey said that the Trump tariffs were “unpredictable,” but added that he believed the major retailer “can navigate that very well.”
However, he expressed concern about the potential impacts of the Trump tariffs on everyday consumers.
A bakery section at a Walmart store in Secaucus, New Jersey, US, on Tuesday, March 5, 2024. (Gabby Jones/Bloomberg via Getty Images / Getty Images)
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In response to fentanyl trafficking into the U.S., President Donald Trump imposed a new 20% tariff on China, in addition to the ones Beijing already faces. The president defended his tariff policies during his address to a joint session of Congress.
“China’s average tariff on our products is twice what we charge them,” President Trump said in his address earlier this month.
Walmart did not immediately respond to Fox Business’ request for comment.
