![]() With Walmart’s huge foot print in China, this would be a massive undertaking, and an incredibly expensive endeavor that would also take years to accomplish. We all know that the Trump administration is using tariffs to push companies to manufacture more goods in the United States, but many experts in the National Retail Federation say the administration’s thinking is flawed and carefully planned supply chain plans can’t be redrawn overnight. (I know this because some of our Attorneys are also testifying on behalf of our clients in D.C.) So, instead of complaining logically (in only a few minutes) that it took years to develop these relationships monetarily speaking, one needs to consider a specific plan of action, and have concise answers that would be reviewed as favorable by the committee. for exclusions and/or exemptions that would be quite a challenge to negotiate as the standard question would be, ”Can you not reasonably source these same products from another country?” You only have a few minutes to speak, if you are (and you may not be) asked a couple of questions by the panel. consumer retail buying, and the fact remains, of the company’s $500 billion in sales last year, about $50 billion was linked to Chinese imports or investments in Chinese businesses, and that is not going to change anytime in the near future, as Walmart continues to invest millions in the Chinese market*.Īs an alternate plan of action, if the trade Attorneys for Walmart were testifying in D.C. So, when do they start to get really mad and do something drastic? After all, they are the giants of U.S. Still, there was just the proverbial sound of crickets, as the note had no effect on the outcome. Looking out for those consumers Walmart explained to the administration “Either consumers will pay more, suppliers will receive less, retail margins will be lower, consumers will buy fewer products, or forego purchases altogether. Walmart shoppers are unaware of (but may soon discover) is that roughly 80% of the merchandise they purchase there is imported directly from China. Both countries’ tariffs came into force on Sept. products – ranging from liquefied natural gas to certain types of aircraft, as well as cocoa powder and frozen vegetables – at 5 and 10 percent, instead of previously proposed rates of 5, 10, 20 and 25 percent, the finance ministry said. Beijing will impose levies on a total of 5,207 U.S. products to its import tariff list on 9/19 in retaliation for President Trump’s planned levies on $200 billion worth of Chinese goods. ![]() These meetings with the Chinese vendors have been getting tougher as Walmart must navigate the new trade landscape as the profit margins may be thinning in the trade war with China. ![]() (A lot of group pictures are taken as well). When the Leer jets from Bentonville land with the Walmart procurement group on board, the red carpet rolls out, and rose petals are thrown at their feet. operations) would lead one to believe that they are treated like royalty by the various companies they do business with in China. (62% of Walmart’s $478 billion revenue in annual sales comes from U.S. Obviously, the buying power they have, and the number of customers they serve in the U.S. In the “big picture” of retail size, Walmart currently has 11,718 stores and clubs operating in 28 countries serving an estimated 270 million customers each week, making them #1. Given the leverage that Walmart has, one would have thought that the Trump Administration would have at least had them over for dinner first before refusing their request. trade war with China directly to Walmart, the country’s largest retailer, and impacts many of the everyday products it sells. The latest round of tariffs brings the U.S. The tariffs, which took effect on 9/24 will jump to 25% at the end of the year (). I wonder, do 54 lobbyists, and a dozen lobbying firms working on behalf of Walmart in D.C. The administration declined the recommendation and on Monday, 9/18, it moved forward with 10% tariffs on those products and $200 billion worth of other imports from China. “The immediate impact will be to raise prices on consumers and tax American business and manufacturers,” Walmart said. Trade Representative Robert Lighthizer, the company said expanded tariffs on Chinese imports would hurt its customers, its suppliers, as well as the U.S. By: Bo b Brewer, VP of Marketing, Braumiller Law GroupĪ few weeks ago, Walmart’s top brass in Bentonville Arkansas kindly asked the Trump administration to scale back on its plan to put tariffs on Christmas lights, shampoo, dog food, luggage, mattresses, handbags, backpacks, vacuum cleaners, bicycles, cooking grills, cable cords and air conditioners.
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