Walmart asking Chinese suppliers to absorb cost of Trump's tariffs
Walmart is asking its Chinese suppliers to cut prices to absorb the cost of Trump's increased tariffs on Chinese-made products in order to keep prices low for American consumers. Studies show that companies tend to absorb tariffs rather than passing the costs to customers.
Key Points
- Companies tend to absorb tariffs to maintain competitiveness
- Studies show limited impact on consumer prices despite tariffs
Pros
- Keeping prices low for American consumers
- Potential for reduced impact of tariffs on consumer prices
Cons
- Pressure on Chinese suppliers to lower prices
- Manufacturers may have to find alternative sources outside China