China Summons Walmart After Asking Suppliers To Absorb Trump’s Tariff Costs

China’s Ministry of Commerce and other agencies summoned Walmart officials on Tuesday, days after a Bloomberg report indicated that the US big-box retailer had asked Chinese suppliers—including those producing clothing and kitchenware—to lower prices in response to tariff increases imposed by President Trump.

According to Yuyuantantian, a Weibo account affiliated with state-run China Central Television, officials from the Ministry of Commerce and other authorities in Beijing met with Walmart representatives to address reports about its price negotiations with domestic suppliers.

China’s Ministry of Commerce and other departments summoned U.S. retail giant Walmart on Tuesday for requiring some of its Chinese suppliers to slash prices, Yuyuantantian, a new media arm of China Media Group (CMG), reported on Wednesday.
It said the reason for the summoning is… pic.twitter.com/u2r9lHC9LJ

— CCTV+ (@CCTV_Plus) March 12, 2025

Walmart’s move to request lower prices from suppliers followed President Trump’s imposition of an additional 10% tariff on all Chinese products last month, which Beijing met with a tit-for-tat 15% tax on US agricultural goods.

“Walmart’s unilateral demand on Chinese firms to cut prices could lead to disruptions of supply chains and hurt the interests of firms and consumers from both countries,” Yuyuantantian wrote in a post, adding, ”If Walmart insists on doing so, then what would happen next would be beyond talks.“

Late last week, Bloomberg revealed that the big-box retailer had asked Chinese suppliers, including those producing clothing and kitchenware, for price discounts. 

Walmart Asks Chinese Suppliers To Absorb Tariff Costs https://t.co/bRXkP8PHnt

— zerohedge (@zerohedge) March 6, 2025

In a regular press briefing on Wednesday, a Chinese Foreign Ministry spokesperson could not confirm the meeting: ”… on this issue, I refer you to relevant Chinese authorities,” without providing further details.

More color from Bloomberg: 

The move marks Beijing’s efforts to show strength as President Donald Trump targets China with consecutive rounds of trade tariffs.

… 

The stakes are high for Walmart. Unlike many global retail brands that have lost their historical dominance in China to local competition, Walmart has defied the country’s consumption slump with robust growth for its membership store Sam’s Club through the sale of premium cuts of meat and other high quality foods increasingly favored by China’s middle class.

Last week, US Treasury Secretary Scott Bessent downplayed the tariff war with China and other top trading partners, indicating: “With the China tariffs, I am highly confident that the Chinese manufacturers will eat the tariffs — prices won’t go up…” 

However, other big box retailers, from Target to Best Buy, have warned about tariff uncertainty and risks of higher prices plagued outlooks.