As a global retail giant, Walmart has long pursued a low-price procurement strategy, relying on its strong market position to pressure suppliers to obtain the lowest purchase price, so as to maintain price competitiveness in the consumer side.

However, the Trump administration recently imposed tariffs on Chinese goods, resulting in a sharp rise in Walmart's import costs. To ease this cost pressure, Walmart has tried to pass on the cost of the new tariffs to its Chinese suppliers, asking some of them to cut prices by as much as 10% in each round of tariff adjustments.

Chinese suppliers: Caught between the cracks

Chinese suppliers are under more pressure than ever. Many suppliers say their profit margins are already thin, especially for commodity manufacturers, where margins are typically around 5 per cent. If Walmart demands a 10% price cut, it will undoubtedly fall into the dilemma of operating at a loss. In addition, some suppliers' upstream suppliers refuse to reduce prices by more than 3%, which further limits the possibility of price cuts.

The textile foreign trade industry has become one of the most affected areas. In recent years, the continuous rise of raw material costs, labor costs and the increasingly stringent environmental requirements have extremely compressed the profit margins of textile enterprises. If further price cuts are made, companies may not be able to maintain normal operations and may even be forced to reduce the quality of their products.

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