Walmart keeping price pressure on suppliers

Walmart Inc is continuing to push Chinese suppliers to cut prices to offset President Donald Trump’s tariffs, even after Beijing officials summoned the US retailer’s executives last month to discuss the issue, according to people familiar with the matter.

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The world’s largest retailer has not backed down from its requests to suppliers to cut prices by as much as 10%, for each round of tariffs, essentially asking them to shoulder Trump’s duties, according to the people, who asked not to be identified as the information is private.

Walmart’s unchanging stance even after being summoned by government officials — and warned by state-affiliated social media of potential retaliation from Beijing — reflects the quandary for Chinese companies as Trump’s tariffs add stress on top of the slowing domestic economy.

The ongoing negotiations, which are common for Walmart and a vast network of vendors, also show the lengths to which American businesses are going to offset added costs. These are only set to grow after Trump announces new reciprocal tariffs against major US trading partners this week, which would add to duties of 25% that Trump has already implemented on Chinese imports.