Walmart resumes sourcing from China amid tariff strain

Walmart resumes sourcing from China amid tariff strain signaling a strategy shift.

U.S. retail giant Walmart has resumed sourcing products from certain Chinese suppliers, indicating a shift in strategy due to rising inventory concerns and the threat of price hikes in the U.S., according to reports from Chinese vendors.

Mu Longsheng, head of Pesitro Healthcare Products in Jiangsu and a long-time Walmart partner, said Walmart contacted them on April 28 to begin preparing raw materials.

This development reflects a partial restart of sourcing previously halted due to increased tariffs on Chinese imports. Mu also mentioned that two other American brands have placed smaller orders to fulfill daily demand. He noted that these retailers are now covering the additional tariff charges and maintaining previous pricing models.

“Retailers are worried about stock shortages,” Mu said, warning that once early 2025 shipments run out, U.S. consumers will face rising prices.

A recent U.S. Commerce Department report showed a 41.3% annual surge in imports in Q1, with goods imports rising 50.9%, driven by companies stockpiling ahead of further tariff hikes. The Trump administration has raised tariffs to 145% on many Chinese goods and 10% on others.

Analysts suggest that the renewed interest in Chinese suppliers is due to a lack of viable alternatives. Jason Yu of CTR Market Research said U.S. retailers are struggling to replace Chinese manufacturers quickly.

U.S. small businesses and consumers are expected to bear the brunt of these tariffs, with the U.S. Chamber of Commerce criticizing the administration’s trade policy on Thursday. Chamber President Suzanne Clark said they’ve received unprecedented appeals from small businesses requesting tariff relief.

Clark emphasized that prolonged supply issues and high costs could seriously damage small enterprises.

In a letter to the administration, the Chamber urged for automatic tariff exclusions for small importers, a formal exclusion application process, and relief for goods unavailable domestically. Clark concluded that increased prices will burden American families and warned that layoffs could be avoided if exemptions are granted.