(NewsNation) — As President Donald Trump imposes tariffs on major export countries, including China, large retailers are looking for ways to cut costs.
Walmart Inc. has reportedly asked Chinese suppliers for price cuts, as much as 10% per round of tariffs, according to Bloomberg.
People familiar with the matter, who did not want to be identified, told the outlet that any reduction beyond 2% would be a profit loss. So far, none of the suppliers have agreed to Walmart’s request.
“It’s basically undoable,” fashion accessories supplier, Lily Lu told Bloomberg. “When you think it can’t get any crazier, it does.”
Truckers brace for impact of Trump’s potential tariffs
With tariffs come higher costs for retailers. In a domino effect, the price may trickle down to consumers. Big box retailers like Target and Best Buy have already warned customers of rising prices.
Trump announced he would impose 20% tariffs on China and 25% on Canada and Mexico. He has since delayed the tariffs on the latter two countries.
A tariff is a tax levied by a government on imports from another country.
