FriedRiceNSpice
Captain
You just answered your own question.
Trump 2.0 official thread
- Thread starter siegecrossbow
- Start date
US/China not in a hot war.
And Walmart not banned from working with different Chinese suppliers.
In that exact interview from May 15th, Walmart CEO also said:
“Walmart is working with vendors to try to keep prices down. But, he added “this is a little bit unprecedented in terms of the speed and magnitude in which the price increases are coming.”
Still, he said, Walmart plans to “play offense” by keeping its price gaps below competitors. The company will absorb some of the higher prices from tariffs and expects suppliers will, too.”
I appreciate that you always look at the bright side for America and for Trump. Here is I think the situation on the ground.
1. Chinese manufacturers exist in large numbers and highly competitive with each other. This means they have thin profit margins and can't raise prices. This also means they cannot lower their prices very much.
2. Margins for products going to America is probably higher compared to ones going to Global South since they are less price sensitive.
3. Companies will provide goods in the short term for no profit, just so they can keep their operation afloat. This I think was what the Chinese government stopped.
4. Chinese exports have been increasing outside of the U.S., which could use up some of the capacity originally for the U.S. market.
5. In the longer run, companies will not produce things for the U.S. for no profit. In fact, they will not produce things for the U.S. for profit less than certain threshold.
6. If Walmart demand a price cut by the vendors, it will come out of quality. If fact, in my personal experience, I had the biggest problem with Chinese products from companies who wanted only the cheapest production, such as clothing from J.C. Penny or Sears.
When you are talking about 30% tariff, most of that will be passed on to the consumer. The Chinese maybe able to absorb 5% and Walmart 5%. Most of the 5% on the Chinese side will come out of Quality. Of course Walmart will say the politically correct thing, but if Amazon, and every other retailers are raising their prices, Walmart will do the same. When they do raise their prices, it will be based on market forces, how much the customers can take.
In the longer run, companies will charge what the market will bear. If it leads to general inflation, it will eventually be reflected in nominal wages increasing.
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Are all Americans 5 years old? Walmart was summoned by the Ministry of Commerce specifically for asking suppliers to lower prices to absorb tariffs, do you think Beijing cares if Walmart do so by sending a Karen to throw a tantrum or by threatening to switch suppliers? Do you think at Walmart's scale they can switch suppliers without detection?
Yeah Walmart can switch suppliers, they just have to pay the same or more than the previous supplier, Beijing didn't ban them from switching suppliers, Beijing just banned them from passing tariff cost to any Chinese supplier.
The nature of trade war isn't up to America to decide, the moment you started it, you better be ready to fight it, if Beijing wants Americans to suffer in this war, you better be ready to suffer.
"aRt oF tHe dEaL"
Will CN accept tho?
Just after Swiss meeting bet CN and US... US made a move vs Huaw3i again... with antiCN articles abt CN telecom/solar/electronic products as well..
They have been doing such things since the Oil Shock of the 1970's.
It is called recycling of the petrodollars.
manqiangrexue
Brigadier
The former.
Chinese suppliers help a lot by underdeclaring everything. I got a $4 item on Aliexpress and the tariff increase was 22 cents because they declared the item to be worth pennies at customs.
Question makes no sense and is perpetual no matter where the prices are. "Why haven't you charged more?" is endless.
Walmart is already at the lowest price in China; have faith in their ability to do that even before the trade war. Everywhere they look, they go to factories that they did not sign with because those factories wanted higher prices than their current suppliers.
They can bullshit however they like to in America; it's a country where no one, even politicians, are expected to tell the truth. But in China, when the CCP summons you to chat, you know what you can and cannot do if you wish your business to remain in the country.
"Who will pay the US tariff on Chinese imports?
The Chinese exporters added that the costs associated with the recently imposed tariffs would be shouldered by the American clients, easing some of the burden on Chinese businesses.
In adapting to the volatile trade environment, many vendors have switched from quoting delivered duty paid (DDP) prices to free on board (FOB) pricing. This allows US importers to handle the new tariff costs through their own customs brokers, who can better navigate shifting regulations."
"On Saturday, China-based news sites reported that U.S. retailers instructed companies in China to restart shipments halted earlier this month. The U.S. retailers agreed to cover Trump's 145% tariffs, the Hong Kong-based Ming Pao newspaper reported."
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