Costco Wholesale is pressuring mainland China suppliers to cut prices in response to US tariffs, The Financial Times reported, citing two suppliers.
This follows Beijing officials meeting with Walmart earlier this month to discuss media reports that the US 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 US 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.
Costco
Earlier this month, the wholesale retailer reported that it earned $4.02 per diluted share, missing analysts' estimate of $4.11 per share, according to data compiled by LSEG.
The company's quarterly revenue rose 9% to $63.72 billion (€58.8 billion), compared with analysts' average expectation of $63.13 billion (€58.2 billion).
Merchandise costs for the quarter ended 16 February rose 9%, compared with a 5% rise a year earlier.
Walmart
In February, Walmart forecast profit for the fiscal year ending January 2026 below Wall Street estimates, suggesting the world's largest retailer expects inflation-weary consumers to pull back after several quarters of solid growth.
The retailer reported total US comparable sales growth of 4.6% in the fourth quarter, which includes November, December, and January. That surpassed analysts' estimates of a 4.15% increase, according to data compiled by LSEG.
Higher income customers or households making six figures were the top drivers of market share in the latest quarter, Walmart said, with seasonal merchandise, auto and home products being top draws.
