Walmart, Target resume business with some Chinese factories after tariff-related halt, suppliers say
Walmart and Target have resumed partial business with some Chinese suppliers after temporarily halting orders due to uncertainties surrounding US tariffs. This resumption follows a meeting between US President Donald Trump and major retailers, who warned of potential empty store shelves across America. The tariff-related disruptions have affected both American retailers and Chinese factories, with many US companies suspending previous agreements with Chinese suppliers. Despite the resumption, retailers are demanding discounts due to increased tariffs, putting pressure on Chinese manufacturers. The trade tensions between the US and China continue, with no signs of resolution, impacting both economies significantly.
Walmart and Target paused orders from Chinese factories due to uncertainties over steep US tariffs, but have now resumed some business following a meeting with President Trump.
The resumed business is a strategic move by retailers to ensure their stores remain stocked amidst the tariff-induced supply chain disruptions.
Trump's 145% tariffs on Chinese goods have led many US retailers to suspend agreements with Chinese suppliers, affecting thousands of factories in China relying on these deals for survival.
Vivi Tong, a toy manufacturer in China, noted that Walmart resumed orders as American inventory levels dropped and Trump signaled a potential tariff reduction.
Despite the partial resumption, many US retailers are demanding price reductions from Chinese suppliers to offset tariff costs, leading to strained relations and financial pressures.
Chinese exporters face significant challenges as they attempt to navigate the trade war, with the Chinese government pledging support to help diversify their markets.
The ongoing US-China trade war, with both countries refusing to de-escalate tariffs, continues to pose significant economic risks to both nations, affecting jobs and business operations.