China Summons Walmart Over U.S. Tariff-Related Price Cuts, Warns of Legal Consequences

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Updated Mar 12, 2025, 10:04 PM

China's Ministry of Commerce has summoned executives from Walmart Inc. following reports that the U.S. retailer requested significant price reductions from its Chinese suppliers to offset the impact of U.S. tariffs imposed by President Donald Trump. The ministry, along with other government departments, met with Walmart representatives on Tuesday to discuss these demands, which are seen as an attempt to shift the burden of the tariffs onto Chinese suppliers and consumers. The discussions come in the wake of recent U.S. tariff hikes, with Trump increasing the duty on Chinese goods from 10% to 20%. This move has prompted retaliatory tariffs from China on U.S. agricultural products. Chinese state media has warned that Walmart's demands could disrupt global supply chains and harm the interests of businesses in both countries, as well as American consumers. Walmart has been warned of potential legal consequences if it insists on these demands. Walmart, which has been expanding its presence in China despite a broader slowdown in domestic consumer demand, relies heavily on products imported from China for its U.S. stores. The retailer's reported request for price cuts from Chinese suppliers, including those in the kitchenware and clothing sectors, has raised concerns about the fairness of such demands and their potential to violate commercial contracts. Walmart's Sam's Club in China saw a 28% growth in net sales last quarter, with about 60% of its products sourced from China. The company had asked for a 10% price reduction from its suppliers.

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Sources

wsj.com(4)bloomberglinea.com(2)asia.nikkei.com(2)cnbc.com(2)

Axios

@axios

Walmart clashes with China after asking suppliers to absorb tariffs https://t.co/TPiH6XlrFr

Evan

@StockMKTNewz

Chinese 🇨🇳 authorities summoned Walmart officials this week after receiving complaints that the retailer was pressuring some Chinese suppliers to cut prices to absorb the cost of 🇺🇸 tariffs - WSJ https://t.co/gbSV0zViuu

FORTUNE

@FortuneMagazine

Officials from China’s Ministry of Commerce met with Walmart executives to discuss reports the retailer had pressured Chinese suppliers to lower their prices in response to tariffs. https://t.co/7bdMdMC2VO