Recently, a major U.S. retailer asked its Chinese suppliers to cut prices, sparking widespread discussion in the industry. According to market sources, the retailer wanted its suppliers to help share the cost of the tariffs, but the offer met with resistance.
It is understood that the retailer requires suppliers to reduce prices by up to 101 TP3T in each tariff round. however, most suppliers have indicated that due to the current rise in operating costs, they will find it difficult to maintain normal operations if they reduce prices by more than 21 TP3T to 31 TP3T.
In the face of this situation, some suppliers have begun to explore supply chain diversification strategy, including finding new partners in Southeast Asia and other regions. However, industry experts have reminded that supply chain adjustment needs to fully consider factors such as product quality control.
At present, both sides are still engaged in active consultations. The industry is generally of the view that in the global trade environment, buyers and sellers should establish a more reasonable cost-sharing mechanism to jointly address market challenges.
Author: Diligence
Xindashun International Logistics (Shenzhen) Co.
Tel: 13556688899
Address: 21B03, Jazz Building, No. 4018, Guinbin Road, Heping Community, Nanhu Street, Luohu District, Shenzhen, China.