Walmart has come under scrutiny after demanding significant price cuts from Chinese suppliers, prompting intervention from China's Ministry of Commerce and other relevant authorities.
According to a March 6 Bloomberg report, Walmart pressured some Chinese suppliers to reduce prices to offset costs from Trump-era tariffs, sparking strong pushback. Sources indicate Walmart negotiated individually with suppliers, with demands varying widely—some kitchenware and apparel suppliers were asked to cut prices by 10% per tariff hike.
Suppliers argue their razor-thin profit margins (often just 2-3%) leave no room for such reductions without losses or quality compromises. The scale of cuts dwarfs past adjustments.
On social media, Chinese manufacturers overwhelmingly stated there’s "no space to absorb U.S. tariffs" and called for government action. While Walmart claims it’s "working to keep prices low for consumers," suppliers insist the retailer must share tariff burdens fairly.
The China Textiles Import/Export Association later condemned "unilateral U.S. tariffs" as the root cause, urging cooperative solutions.
Context:
Walmart sources 60% of its global goods from China.
Its direct purchasing model (bypassing agents) already squeezes supplier margins.
Some suppliers now explore Vietnam-sourced components to cut costs.
(Sources: Bloomberg, Reuters, MOFCOM statements)
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