Walmart tells Chinese suppliers to resume shipments

Major US retailers, including Walmart, have asked suppliers in China’s Jiangsu and Zhejiang provinces to resume shipments despite ongoing trade war tensions.

A stationery exporter in Ningbo confirmed receiving orders from Walmart to resume deliveries.

The company’s vice-president said that additional tariffs on Chinese goods would be absorbed by US clients, allowing shipments to continue without extra costs for Chinese exporters.

To adapt to tariff unpredictability, some vendors have shifted to quoting shipments on a Free on Board (FOB) basis.

This change allows US importers to manage tariff payments locally.

Tariffs remain high on both sides, and experts warn that while talks may be happening behind the scenes, exporters should stay cautious amid policy uncertainty.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Trade war resilience shows evolved business tactics in global commerce

Walmart’s decision to resume shipments while absorbing tariff costs demonstrates a significant evolution in how businesses manage trade conflicts compared to earlier phases of the US-China dispute.

When tariffs first hit in 2018, US importers responded with immediate cancellations and significant order reductions, leading to a sharp 25% drop in the Shanghai Composite index as markets reacted to the disruption 1.

This time, large retailers are adapting more strategically by shifting payment terms from “delivered duty paid” (DDP) to “free on board” (FOB), allowing US importers to manage tariff complexities through specialized clearance agents 2.

This adaptation shows businesses learning to operate within trade barriers rather than simply avoiding them, reflecting a maturing response to trade tensions that have become a persistent feature of global commerce since 2018.

2️⃣ Strategic burden-shifting reveals power dynamics in global retail

Walmart’s decision to absorb tariff costs rather than passing them to suppliers or consumers reveals the complex power dynamics in global retail supply chains during trade conflicts.

The retailer’s willingness to bear tariff costs—which have reached up to 245% on some Chinese goods—indicates both the continued importance of Chinese manufacturing and Walmart’s fear of alienating price-sensitive consumers 3.