Walmart plays hardball with Chinese suppliers as Trump tariffs take hold
Walmart has no intention of paying more for the items it sources from China, despite the fact that costs have increased for importers now President Trump has ushered in tariffs on foreign goods. The post Walmart plays hardball with Chinese suppliers as Trump tariffs take hold appeared first on Global Cosmetics News.
THE WHAT? Walmart has no intention of paying more for the items it sources from China, despite the fact that costs have increased for importers now President Trump has ushered in tariffs on foreign goods.
THE DETAILS According to a report published by The Business of Fashion, the US retailer has asked its Chinese suppliers to cut prices by a considerable margin, in effect requiring them to shoulder the full cost of the new duties. The Business of Fashion reports that few have bowed to the pressure.
THE WHY? With margins already tight for suppliers to the world’s largest retailer, even a 2 percent reduction could result in a loss, The Business of Fashion reports. If suppliers won’t shoulder the burden, the Walmart has two choices: find a supplier that will, or increase prices for US consumers.
The post Walmart plays hardball with Chinese suppliers as Trump tariffs take hold appeared first on Global Cosmetics News.
