China tariff watch: walmart sets price-increase strategy with supplier-cost tool

by MR Magazine Staff

Walmart Inc. has updated the information network used daily by its suppliers to let them submit cost increases directly attributable to higher U.S. tariffs on Chinese goods. The move shows how the world’s largest retailer, which sells billions of dollars of goods made in China annually, is incorporating the reality of tariffs into its day-to-day operations. Walmart emerged relatively unscathed from the first rounds of tariffs on imports from America’s largest trading partner. But that’s changed, with the U.S. bumping levies to 25% on $200 billion of goods, including handbags and furniture, then initiating a separate process to tax another $300 billion, including clothing, shoes and electronics. The retailer began using the tool, dubbed Cost Change Scenario, a year ago and has been rolling it out across product categories. Read more at Fortune.