Walmart, Home Depot, Target Push Chinese Suppliers To Resume Shipments, Agree To Absorb Tariffs: Report
Analyst Ray Wang posted that major U.S. retailers, including Walmart and Target, have reportedly asked Chinese suppliers to resume shipments, with tariffs to be absorbed by the American retailers.
What Happened: On Saturday, Wang posted on X that several Chinese exporters at the ongoing China Import and Export Fair (Canton Fair) revealed that U.S. retail companies, including Walmart Inc. (NYSE:WMT), Home Depot Inc. (NYSE:HD), and Target Corporation (NYSE:TGT), have instructed Chinese suppliers to restart shipments that had been halted due to the recent tariff war.
However, the cost of the tariffs would be borne by the retailers. The decision by these U.S. retailers came after a meeting with President Donald Trump at the White House, as per the report in Hong Kong’s Ming Pao.
Exporters mentioned by the Ming Pao report that some orders are resuming, while others have been canceled. Due to high tariffs, US retailers like Walmart must either cancel orders for Chinese products or pass the tariff costs onto American consumers, reported Global Times.
Why It Matters: This development follows a meeting between President Trump and the CEOs of Walmart, Home Depot, and Target. The meeting focused on the potential impact of Trump’s extensive tariff plans on the import-centric business models of these retail giants.
Furthermore, the ongoing U.S.-China trade war has been causing potential shortages in key consumer product areas, pushing the national supply chain towards a critical point. The sudden implementation of tariffs left companies with little time to adjust their sourcing strategies.
With the resumption of shipments from Chinese suppliers, these retailers seem to be taking measures to mitigate the impact of the tariff battle on their operations and on American consumers.
Over the past month, Walmart surged 11.7%, while Target declined 6.8%. Meanwhile, Home Depot edged 0.16% lower during the period, as per Benzinga Pro.
