If Walmart can’t get its Chinese suppliers to roll back prices, everyone else is in deep trouble
According to reporting by Bloomberg, Walmart has been asking some of its Chinese suppliers to cut prices by up to 10% per round of fresh tariffs.
As of now, very few suppliers are said to have agreed.
Walmart is essentially the king of asserting power over its suppliers, often pressuring them to accept lower margins to maintain high-value shelf space. Sources that spoke to Bloomberg said many suppliers operate on such tight margins that a price cut greater than 2% would have them take a loss.
The fact that suppliers are now resisting doesn’t paint a rosy picture for other major retailers like Target and Best Buy, which generally aren’t known for having as much pricing muscle with suppliers as Walmart.
It also may not bode well for American consumers, whom many economists expect to bear the brunt of President Trump’s tariffs through higher prices.
Walmart is essentially the king of asserting power over its suppliers, often pressuring them to accept lower margins to maintain high-value shelf space. Sources that spoke to Bloomberg said many suppliers operate on such tight margins that a price cut greater than 2% would have them take a loss.
The fact that suppliers are now resisting doesn’t paint a rosy picture for other major retailers like Target and Best Buy, which generally aren’t known for having as much pricing muscle with suppliers as Walmart.
It also may not bode well for American consumers, whom many economists expect to bear the brunt of President Trump’s tariffs through higher prices.
