Costco is pressuring Mainland China suppliers to cut prices as tariffs loom

The Financial Times reported on Tuesday, citing two suppliers, that Costco Wholesale is pressuring mainland China suppliers to cut prices in response to US tariffs.

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, said during their quarterly earnings call earlier this month that the company would consider modifying its international supply chain if tariffs result in significant price increases.

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.