US Companies Call on Chinese Suppliers to Resume Shipping
The US-China trade war has continued to escalate in 2025, with both nations imposing record-high tariffs on each other that have nearly frozen bilateral trade.
Over recent months, the US raised tariffs on Chinese imports to at least 145%, prompting China to retaliate with 125% tariffs on American goods. This escalation has sent US exports to China plummeting, echoing lows last seen during the COVID-19 pandemic.
The standoff is regarded by some as a political power struggle between President Trump and President Xi, with neither leader showing willingness to compromise. China has also implemented non-tariff barriers and restricted exports of critical materials, further straining relations.
Global markets have responded to the crisis with volatility, with experts warning of broader economic fallout if the dispute continues.
Despite a temporary pause on some tariffs for other countries, the US remains firm in its hard-line approach toward China. With negotiations stalled and both sides digging in, the trade war shows no sign of abating, leaving the global economy in a state of uncertainty.
Retail giants absorb colossal tariff costs
Despite this uncertainty, it is being reported that Walmart and Target are calling on Chinese suppliers to start shipping again.
As reported by CNN, two Chinese factories have told the news outlet that the two companies have resumed shipments – with the retailers reportedly stating they would cover the 145% tariff imposed.
The South China Morning Post has reported that a major exporter of stationery and office products in the eastern city of Ningbo received a notification from Walmart on Monday to resume normal deliveries to the United States, weeks after a series of tariff hikes between the world's two largest economies slowed shipments.
China Daily has reported that Walmart has resumed its product sourcing from some suppliers in the country – a shift in its procurement strategy, despite the rising inventory pressure and the looming price hikes.
Suppliers warn of imminent price increases
Mu Longsheng, Director of Pesitro Healthcare Products — a longtime Walmart supplier in Jiangsu province — was reported by China Daily as saying the US retailer informed the company on April 28 to prepare for raw material procurement.
"Two other US brands have also placed orders with us, though the volumes are still small," Mu said. "They are looking to meet immediate daily demand."
The director supported those reports in CNN, saying the retailers will be covering the additional tariff cost – with prices being set based on previous orders.
"Many retailers in the United States are anxious about maintaining stock," he said. "Once their early 2025 shipments — arranged to beat tariff hikes — run out, consumers in the US will start feeling the shortage. Price increases are inevitable."
The US Chamber of Commerce has spoken out against President Trump's trade policy, saying these tariffs could inflict serious damage to America's main street.
As reported by CBS, a letter was sent to Treasury Secretary Scott Bessent on Wednesday by Suzanne Clark, President and CEO of the US Chamber of Commerce, asking for an "automatic exclusion" from new tariffs for US small businesses that import goods from abroad. Small businesses do not have the margin or capital reserves to survive an increase in tariffs, Clark wrote in the letter.
"The Chamber requests the administration take immediate action to save America's small businesses and stave off a recession," she noted.
Suzanne went on to write that raising prices on affected products would only hurt families struggling to pay their bills and urged the administration to protect workers from potential job losses by allowing exemptions for companies who may be forced to lay off their employees.
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