The Scoop: Walmart struggles to appease vital Chinese suppliers in tariff wars

U.S. companies are already fighting to please both a volatile administration and price-conscious shoppers amid a rapidly changing tariff environment. But they’re also struggling to communicate clearly with the Chinese suppliers that are so important to offering the low prices Walmart shoppers rely on.

The Wall Street Journal reports that Walmart has sought to have Chinese suppliers absorb the costs of President Donald Trump’s 30% tariffs on Chinese imports. In response, Chinese officials have demanded answers from the retailer – and also hinted at repercussions.

There was also a veiled threat: The Chinese side told Walmart that asking suppliers to lower prices might violate contracts and disrupt market order, and the officials referred to potential legal consequences, the people said.

“If Walmart insists” on making Chinese suppliers absorb the blow, “then what awaits Walmart is not just talk,” state broadcaster China Central Television said on social media Wednesday.

Walmart said it is in discussions with suppliers to help consumers save money and it will continue to work closely with suppliers “to find the best way forward during these uncertain times.”

Walmart serves price-aware shoppers who rely on the retail giant for affordable goods, ranging from groceries to clothes.

“We’re wired to try and save people money. So that will be our ultimate goal,” Walmart CEO Doug McMillon said on a February earnings call of weathering the tariffs.

Why it matters: Global supply chains are always delicate, complex things, requiring intense negotiations across cultural lines. But the heat is especially high right now as everyone grapples with the reality of tariffs. This moment requires a careful managing of public affairs, logistical understanding and communications. It’s impossible to silo messages: Promises to American consumers to keep prices low will have ripple effects in China, as those cost savings must come from somewhere. Similarly, China is working to protect its own interests, using tough language that echoes that used by Trump himself, as well as the threat of the courts to try to keep Walmart in line.

At the same time, Walmart must walk a fine line of polite, conciliatory public statements while apparently playing hardball behind the scenes.

Keeping all stakeholders happy at the moment is nearly impossible. Someone will walk away unhappy. But by remaining relatively neutral and conciliatory publicly, Walmart gives itself the best chance at success – at least until the tariff situation changes again.

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Allison Carter is editorial director of PR Daily and Ragan.com. Follow her on LinkedIn.