China is turning up pressure on Walmart. That could mean higher prices for US customers

Walmart thought it could use its immense power as America’s biggest retailer to make Chinese suppliers eat the cost of President Donald Trump’s tariffs. But Walmart got a response it’s not accustomed to hearing: No.

Walmart thought it could use its immense power as America’s biggest retailer to make Chinese suppliers eat the cost of President Donald Trump’s tariffs. But Walmart got a response it’s not accustomed to hearing: No. Trump has slapped 20% tariffs — or taxes on imported goods — on all products coming from China. That’s put the squeeze on retailers like Walmart, which imports a lot of merchandise from China and sells those goods at the lowest price possible to American consumers. Walmart, in turn, has tried to pressure its Chinese suppliers to lower prices. But the Chinese government is having none of it. The strong reaction from the Chinese government reveals how American companies are caught in the middle of an escalating trade war between the United States and China. While customers in the United States want low prices, that could be hard for Walmart to achieve if the Chinese government is stepping in, trade experts say. And if a company even as strong as Walmart struggles to hold down prices, it means that much smaller companies are going to be hurting, too. Chinese officials said this month that they requested local Walmart executives speak to them following a report that the company had asked some Chinese suppliers, including kitchenware and clothing suppliers, to lower prices by as much as 10% for each round of US tariffs. “Our relevant departments have reached out to Walmart to further understand the situation, and the company has provided an explanation,” He Yongqian, a spokesperson for the Commerce Ministry, told a press briefing earlier this month, without providing further detail. A Walmart spokesperson said that the company’s “purpose is to help people save money and live better. Our conversations with suppliers are all aimed at making our purpose a reality for millions of customers, and we will continue to work closely with them to find the best way forward during these uncertain times.”