Beijing – Officials in China called Walmart executives in for a summit to express their displeasure with the company’s attempt to offload higher tariff costs onto its suppliers, according to numerous reports.
The Wall Street Journal characterized the exchange as a “dressing down” of Walmart executives during the meeting with Chinese government agencies, including the Ministry of Commerce.
Several reports referred to a post earlier today by Yuyuan Tantian, a social media account affiliated with state television broadcaster CCTV. It asserted that Walmart’s alleged request that Chinese suppliers swallow the entire cost of President Trump’s extra 10% levy on Chinese imports could disrupt the supply chain and hurt business in both countries.
It also accused Walmart of breeching commercial contracts and warned, “If Walmart continues down this path, it may face consequences beyond a government summons,” according to news source Nikkei Asia.
China’s textile sector is also also chafing against Walmart’s tariff posture.
“In a separate statement on Wednesday, the China Chamber of Commerce for Import and Export of Textiles said it had received complaints from some members after Walmart asked them to cut prices. The state-backed textile trade group said it would take action to protect its members if that is confirmed,” Nikkei Asia reported.
Trump Administration officials assert that the expanding roster of tariffs will ultimately be good for the U.S. economy.
“I am highly confident that the Chinese manufacturers will eat the tariffs, (and) prices won’t go up,” U.S. Treasury Secretary Scott Bessent told Fox News in a recent interview.
See also:
- Textiles and tariffs: HTT survey shows split outlook amid economic uncertainty
- NRF chief economist says Washington policies “blur” the economic outlook