Walmart Pressures Chinese Suppliers To Cut Prices Amid Tariff Burden

Walmart has asked some of its Chinese suppliers to significantly lower their prices as the retailer seeks ways to offset the impact of U.S. tariffs, Yahoo Finance reported.

Few suppliers have agreed to Walmart's request as their profit margins are already razor-thin due to aggressive cost-cutting strategies. I Photo: Walmart Canada

However, the request has met strong resistance from Chinese manufacturers. Last month, Walmart issued a lower-than-expected 2025 sales and profit forecast, citing economic uncertainty driven by President Donald Trump’s tariff policies.

According to Reuters, certain suppliers, including producers of kitchenware and clothing, have been asked to reduce their prices by as much as 10% per round of tariffs, effectively absorbing the full cost of Trump’s duties.

However, few suppliers have agreed, as their profit margins are already razor-thin due to Walmart’s aggressive cost-cutting strategies.