(Reuters) – Walmart has asked some Chinese suppliers for major price cuts, with the U.S. retail giant’s efforts to shift the burden of President Donald Trump’s tariffs facing strong push back from firms in the Asian nation, Bloomberg News reported on Thursday.
Certain suppliers, including makers of kitchenware and clothing, have been asked to lower their prices by as much as 10% per round of tariffs, likely shouldering the full cost of Trump’s duties, the report said, citing people familiar with the matter.
According to the report, few have accepted. Suppliers’ margins are already razor thin due to Walmart procuring goods cheaply in order to maintain its competitive advantage.
The retailer initially requested price reductions from manufacturers when Trump’s first round of tariffs on China took effect in early February, with the request for additional cuts coming later the same month when he threatened to double duties, the report said.
Walmart did not immediately respond to a Reuters’ request for comment.
Last month, the U.S. retailer forecast sales and profit for the current year below expectations, citing the need for caution in navigating an uncertain geopolitical landscape cast by high interest rates and Trump’s tariffs.
(Reporting by Disha Mishra and Ananya Mariam Rajesh in Bengaluru; Editing by Shilpi Majumdar)
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