March 6 (Reuters) - Walmart ( WMT ) has asked some
Chinese suppliers for major price cuts, with the U.S. retail
giant's efforts to shift the burden of President Donald Trump's
tariffs facing strong push back from firms in the Asian nation,
Bloomberg News reported on Thursday.
Certain suppliers, including makers of kitchenware and
clothing, have been asked to lower their prices by as much as
10% per round of tariffs, likely shouldering the full cost of
Trump's duties, the report said, citing people familiar with the
matter.
According to the report, few have accepted. Suppliers'
margins are already razor thin due to Walmart ( WMT ) procuring goods
cheaply in order to maintain its competitive advantage.
The retailer initially requested price reductions from
manufacturers when Trump's first round of tariffs on China took
effect in early February, with the request for additional cuts
coming later the same month when he threatened to double duties,
the report said.
Walmart ( WMT ) did not immediately respond to a Reuters' request
for comment.
Last month, the U.S. retailer forecast sales and profit for
the current year below expectations, citing the need for caution
in navigating an uncertain geopolitical landscape cast by high
interest rates and Trump's tariffs.