Walmart is confronting challenges over U.S. tariffs, with China accusing the retailer of pressuring local suppliers to carry the burden of these increased costs. The Chinese Ministry of Commerce engaged Walmart executives to discuss the situation, advocating for cooperation instead of conflict. While Walmart's operations in China are expanding, they currently represent less than 3% of global sales. Nonetheless, about 60% of the retailer's shipments originate from China. Walmart has also heavily invested in enhancing its Chinese logistics, showcasing its reliance on Chinese supply chains despite potential backlash.
Officials from China's Ministry of Commerce met with Walmart executives on Tuesday to cry foul over the retailer pressuring local suppliers to absorb tariff hikes.
Walmart's retail business in China is growing but was still less than 3% of the company's total sales in the 2024 fiscal year, according to an SEC filing.
The retailer has historically had strong bargaining power over its Chinese suppliers and requests for lower prices have mostly been met.
The Ministry of Commerce called for Chinese and American companies to work together in response to the tariffs.
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