China holds talks with Walmart on impact of US tariffs: Local reports
A Walmart sign is displayed outside a Supercenter on Nov 18, 2024 in Miami, Florida. (File photo: AFP/Getty Images/Getty Images North America/Joe Raedle)
BEIJING: Chinese authorities have held discussions with Walmart after the US retail giant demanded local suppliers cut their prices, reports said on Wednesday (Mar 12), as the wide-ranging impacts of President Donald Trump's tariff hikes begin to sink in.
"A source revealed to us that on Mar 11, the Ministry of Commerce and other relevant departments held talks with Walmart," Yuyuan Tantian, a social media account under state broadcaster CCTV, reported.
"The reason for the talks was Walmart's demand for significant price reductions from some Chinese suppliers, attempting to shift the burden of US tariffs on China onto Chinese suppliers and consumers," the report said.
Earlier this month, Trump raised the 10 per cent blanket tariff he previously imposed on Chinese products to 20 per cent, citing Beijing's continued failure to stem the flow of deadly fentanyl precursors.
China responded by slapping its own tariffs of up to 15 per cent on a range of US agricultural goods including soybeans, chicken and pork.
The CCTV-affiliated account said it "believes that there are several key points worth noting from this discussion", including that Walmart's demand for price cuts "may violate commercial contracts".
"If Walmart insists on this course of action, the consequences for the company will go beyond just a discussion," it added.
China's commerce ministry did not immediately confirm the talks with Walmart.
Separately, the China Chamber of Commerce for Import and Export of Textiles issued a statement on Wednesday calling on US retailers to "solve international trade problems fairly and reasonably".
The body said it had recently received reports from members that large US firms had asked Chinese suppliers to lower their prices.
"We are further verifying the situation. If the situation is true, we will take positive measures to safeguard the legitimate interests of member companies," the statement read.
It said it had taken note of the recent discussion between Chinese authorities and Walmart, adding that it "(hopes) companies from both countries can solve issues of common concern through friendly consultation".
