South Korean media: "American Walmart asks Chinese enterprises to bear 66% of the tariff increase!"
On June 1, South Korean media "Global Economy" published an article stating that the largest American retailer, Walmart, has gone against its previous commitment to bear the tariff burden and now requests its Chinese suppliers to take on the tariff burden.
It is reported that American retailers, including Walmart, have been negotiating with their Chinese suppliers for several weeks on how to cope with the additional costs caused by Trump's tariff increases.
Previously, American retailers attempted to pass on the increased tariffs to Chinese enterprises but later abandoned this approach. However, they now require suppliers from China and some regions in Southeast Asia to bear a significant portion of the tariff burden.
A person in charge of a Chinese company supplying clothing to Walmart revealed that "most similar suppliers are currently required to bear 50% to 66% of the tariffs."
The United States and China agreed last month to significantly reduce tariffs within 90 days. According to this agreement, the U.S. reduced tariffs on Chinese products from 145% to 30%, and China reduced tariffs on American products from 125% to 10%.
However, if the two countries fail to reach an agreement within 90 days, tariffs may soar back into the triple digits.
Original article: https://www.toutiao.com/article/1833712489343239/
Disclaimer: The article solely represents the views of the author.