(Reuters) -Costco Wholesale is pressuring mainland China suppliers to cut prices in response to U.S. tariffs, The Financial Times reported on Tuesday, citing two suppliers. This follows Beijing officials meeting with Walmart earlier this month to discuss media reports that the U.S. retailer asked Chinese suppliers to slash prices to offset tariff impacts. Costco’s Chief […]
Business
Costco is pressuring suppliers in mainland China to cut prices, FT reports
Audio By Carbonatix
(Reuters) -Costco Wholesale is pressuring mainland China suppliers to cut prices in response to U.S. tariffs, The Financial Times reported on Tuesday, citing two suppliers.
This follows Beijing officials meeting with Walmart earlier this month to discuss media reports that the U.S. retailer asked Chinese suppliers to slash prices to offset tariff impacts.
Costco’s Chief Executive Officer Ron Vachris had said that the company would consider modifying its international supply chain if tariffs result in significant price increases, during their quarterly earnings call earlier this month.
According to Vachris, about one-third of Costco’s U.S. sales come from products imported from other countries, with less than half of that originating from China, Mexico, and Canada.
Costco did not immediately respond to a Reuters request for comment.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Tasim Zahid)