Following Walmart, Costco is asking Chinese suppliers to reduce prices to offset the impact of tariffs and is considering adjusting its supply chain to reduce costs.
Costco says it may adjust its supply chain if tariffs continue to increase import prices - Photo: AFP
CNA news agency on March 20 quoted the Financial Times as saying that the leading US retail group Costco is asking Chinese suppliers to reduce prices to offset the impact of tariffs, following Walmart's previous move.
The US imposed a 10% tariff on goods imported from China in February, which was later increased to 20%, putting significant pressure on US importers, forcing them to find ways to cope with the increased costs, including asking Chinese suppliers to reduce prices to offset the tariffs.
Several Chinese suppliers told the Financial Times that Walmart and other major retailers, including Costco, have asked them to lower their prices, which makes it more expensive for Chinese companies to maintain trade relations with their US partners.
According to Reuters , in a financial press conference in March, Costco CEO Ron Vachris said about one-third of Costco's revenue in the US comes from imported goods, with goods mainly coming from China, Mexico and Canada.
However, the company may consider adjusting its international supply chain if tariffs continue to increase import prices.
Walmart has been negotiating with its Chinese suppliers to reduce prices to offset the tariffs imposed by the US, with some suppliers saying they were forced to cut prices by up to 10% per round, meaning they would have to shoulder the entire tax.
According to CNA , a kitchenware manufacturer in Guangdong shared that having to deeply discount prices could seriously affect their business operations, even putting them at risk of bankruptcy if this pressure continues.
China's response
On March 12, the Yuyuan Tantian media platform of China Central Television (CCTV) revealed that the Chinese Ministry of Commerce and several relevant agencies had summoned Walmart to discuss the issue of putting pressure on Chinese suppliers to reduce prices.
The platform's report argues that forcing suppliers to bear the full cost of tariffs could disrupt the market.
China warned Walmart that the consequences "will not stop at a summons" if the corporation continues to pursue a strategy of shifting the cost burden to Chinese businesses.
Source: https://tuoitre.vn/sau-walmart-costco-tim-cach-giam-chi-phi-nhap-hang-tu-trung-quoc-20250320174433312.htm
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