Bloomberg: Walmart seeks price cuts from Chinese suppliers
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Walmart asked some Chinese suppliers to cut prices to shift the burden of President Trump's tariffs, Bloomberg News first reported.
Why it matters: After campaigning on a promise to curb inflation, Trump's trade war risks raising prices on everything from food and clothing to cars and computers.
- While Trump again paused tariffs on Mexico and Canada on Thursday, he seemed intent on taxing goods from China.
State of play: Bloomberg News, which referenced unidentified sources, reported that makers of kitchenware and clothing have been asked to lower their prices by as much as 10%.
- The company holds negotiations with each company separately, and Bloomberg's sources said few suppliers have agreed to the reductions.
What they're saying: "As we have done in the past, we will continue to work with suppliers to keep prices as low as possible for customers," a Walmart spokesperson told Axios via email Thursday.
- "In the meantime, we encourage all parties to work towards finding common ground that will protect consumers from price hikes and continue to grow our economy."
Flashback: In the company's recent earnings call with investors, CEO Doug McMillon said Walmart is prepared to manage the impact of tariffs imposed by the Trump administration
- "We can't predict what will happen in the future, but we can manage it really well."
The bottom line: Walmart said in 2021 it plans to spend $350 billion by 2030 on items made, grown or assembled in the U.S.
- Of Walmart's annual purchase of goods, nearly two-thirds are products made, sold or assembled in the U.S., Jason Fremstad, SVP of supplier development and sourcing, told Axios in September.