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In a significant move to stabilize inventory levels, Walmart and Target have partially resumed purchasing from some of their Chinese suppliers, just weeks after halting orders due to growing uncertainty around steep U.S. tariffs. This shift follows a meeting between President Donald Trump and the heads of major retail chains, including Walmart and Target, where they warned of impending product shortages across American shelves.
The renewed transactions come at a time when U.S.-China trade relations remain strained, with both nations unwilling to ease the aggressive tariffs that have disrupted global supply chains. Trump’s imposition of 145% tariffs on Chinese goods had initially led many U.S. retailers to cancel supplier contracts. The pressure is particularly intense for industries reliant on low-margin goods, such as toys and ceramics, where even a modest tariff makes pricing less competitive.
Despite the resumption, business remains tentative. Suppliers in China, like Tong, report minimal shipments and cautious buyer behavior. Traditionally, this season would mark the beginning of peak production for the holiday rush, but the uncertainty has led to smaller orders and intense negotiations. U.S. retailers, facing inventory pressures, are increasingly demanding discounts, which some suppliers have reluctantly accepted.
Reports from local Chinese media, such as Ming Pao, confirm that Walmart has resumed orders from certain exporters, albeit only partially. One ceramics supplier at a Guangzhou trade fair noted that orders have trickled in, but remain far from pre-tariff levels. Target has also resumed a delayed shipment from a Zhejiang-based factory, though business with other retailers like Costco and Sam’s Club is still on hold.
American retail executives are attempting to navigate the fallout by lobbying for tariff exemptions on essential goods. According to Michael Hart of the American Chamber of Commerce in China, companies are negotiating with Chinese authorities to get key products exempted from tariffs—especially when alternative sourcing is impossible. Still, the climate remains tense, and suppliers like Allen Yan refuse to offer further price cuts despite the threat of empty shelves.
In response to these developments, a Chinese state-run editorial warned the U.S. to reconsider its trade policies. The Global Times stated that the situation underscores how reckless tariffs are destabilizing American supply chains. The piece urged Washington to abandon its current approach and resume dialogue with China before the damage becomes irreparable.