China’s Commerce Ministry Engages Walmart Over Supplier Pricing Amid Tariffs
China’s commerce ministry met with Walmart to discuss supplier pricing amidst concerns about U.S. tariffs. Reports indicate that Walmart has requested price reductions of up to 10% from Chinese suppliers. Treasury Secretary Scott Bessent expressed confidence that manufacturers would absorb these tariffs without raising prices.
The Ministry of Commerce of China recently convened a meeting with representatives from Walmart to address concerns regarding supplier pricing following media reports. These discussions are believed to stem from allegations that Walmart has urged its Chinese suppliers to reduce prices to mitigate the financial impact of tariffs imposed during the Trump administration.
According to information circulated by the Yuyuantantian account on Weibo, linked to state-run CCTV, this meeting occurred on March 11. The reports indicated that sources close to the meeting were cited, although there was no immediate comment from Walmart or the Chinese Ministry of Commerce in response to inquiries from Reuters.
Reports from Bloomberg last week had suggested that specific Chinese suppliers, particularly those producing kitchenware and clothing, were asked to reduce their prices by up to 10% in light of tariff increases, effectively passing the financial burden of U.S. duties onto the suppliers.
U.S. Treasury Secretary Scott Bessent earlier expressed optimism that Chinese manufacturers would absorb the impact of U.S. tariffs. In an interview, Bessent stated, “I am highly confident that the Chinese manufacturers will eat the tariffs, (and) prices won’t go up,” reflecting a strong belief in the capacity of these manufacturers to manage the costs associated with tariffs.
In summary, China’s Ministry of Commerce and Walmart recently discussed supplier pricing amid concerns about the impact of U.S. tariffs on Chinese goods. Suppliers have been reportedly asked to lower prices significantly, potentially shifting the burden of tariffs entirely onto them. Moreover, U.S. Treasury’s confidence in Chinese manufacturers absorbing tariff costs highlights a complex interplay in the current economic landscape.
Original Source: www.tradingview.com
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