From Yahoo Finance: 2025-04-02 11:31:00

Walmart is reportedly asking Chinese suppliers to absorb the costs of U.S. tariffs, demanding price reductions of up to 10%. Chinese officials have called the request irresponsible. Despite pushback, Walmart stands firm, impacting various product categories beyond China. The U.S. imposes a 20% tariff on $430 billion of Chinese imports.

Only a few suppliers have agreed to Walmart’s demands, with some others refusing cuts beyond 3%. Walmart’s influence in China with over 330 locations is significant, amid the U.S.-China trade war. CEO Doug McMillon notes challenges ahead as U.S. consumers may bear the financial burden from these tariffs.

Walmart isn’t alone in asking suppliers to absorb tariff costs, with major retailers like Target and Costco following suit. Target reduced reliance on Chinese imports, aligning with Walmart and Costco’s strategy. Suppliers risk being squeezed by additional costs, affecting smaller businesses more severely.

A supplier for Costco expressed concerns to the Financial Times about smaller suppliers being potentially “screwed” by absorbing tariff costs. Costco has yet to respond to inquiries. For the latest news, follow Quartz on Facebook, Twitter, and Instagram.

Read more: Walmart continues to lead on tariffs, further pressuring suppliers