Walmart's Push For Supplier Discounts Draws Scrutiny From China Amid Trade War

Retail heavyweight Walmart finds itself caught in the escalating trade conflict between the United States and China, and in an effort to mitigate the impact of rising tariffs imposed by President Donald Trump, the company is reportedly urging some of its Chinese suppliers for price discounts.

China's state-run broadcaster CCTV reported that officials from the country's Ministry of Commerce recently met with executives from the U.S. retail giant to discuss reports that Walmart requested price reductions from Chinese suppliers to counteract the effects of the Trump administration's tariffs.

According to social media posts affiliated with CCTV and published on Wednesday on the Yuyuantantian Weibo account, the meeting took place on March 11.

During the discussion, Chinese officials told Walmart that asking suppliers to slash prices could violate contracts and disrupt market stability, according to The Wall Street Journal. The commerce ministry called for Chinese and American companies to work together in response to the tariffs.

A Walmart spokesperson confirmed the meeting took place but provided no details. In a statement cited by Reuters, the retailer said, "We will continue to work closely with them (suppliers) to find the best way forward during these uncertain times. We have a strong business in China and are proud of our associates around the world who are delivering for customers and members."

Businesses Struggle As U.S.-China Trade War Intensifies

Last week, Trump raised tariffs on all Chinese goods to 20%, prompting China to retaliate with new tariffs on U.S. agricultural products, which took effect on Monday.

Trump's unpredictable tariff hikes have left many businesses struggling, with retailers warning that they might have to raise prices even as customers grapple with rising inflation and financial strain.

Yuyuantantian also hinted that Chinese authorities might take further action if Walmart continues to press for discounts. While it is common for retailers to ask suppliers for lower prices in China, many suppliers already operate on slim profit margins, making it difficult for them to meet such demands.

Walmart's Strong Presence in China Amid Trade Tensions

Based in Arkansas, Walmart not only imports products from China, but also has a strong and growing footprint in the country. Since entering China in 1996, Walmart has expanded with its first superstore and Sam's Club in the megacity city of Shenzhen.

Today, Walmart operates in over 100 Chinese cities. In the most recent financial year, its net sales in China increased by 16%, reaching $17 billion, up from the previous year.