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China Chides Walmart; Target Revamps Grocery Supply Chain By Mark R. Long

Chinese authorities this week summoned and rebuked Walmart officials following complaints that the U.S. retail giant was leaning on some Chinese suppliers to cut prices to help it absorb the cost of U.S. tariffs.

The WSJ's Hannah Miao and Raffaele Huang write that President Trump's decision to add a 20% tariff on Chinese imports on top of previous duties puts retailers like Walmart in a jam . Raising prices to recoup higher costs risks angering Trump and consumers, but getting suppliers to eat the higher costs isn't easy, either.

China is under pressure, too, as the tariffs inflict pain on the country's export-dependent economy, which already is wrestling with overproduction and weak domestic demand. Some American businesses have been cutting their dependence on China as relations have deteriorated.

Walmart and other retailers in recent weeks have told some suppliers they want discounts on China-made products, according to industry executives. Some suppliers have been asked to move production outside of China, the executives said.

This would extend a trend of companies shifting production to Southeast Asia and elsewhere , with some makers of sensitive high-tech goods already pursuing an "anything but China" strategy .

Here is where things stand with Trump's tariffs and protectionist policies. (WSJ) The European Union plans to impose 50% tariffs on imports of U.S. whiskey, motorcycles, motorboats and other products on April 1. (WSJ) U.S. tree nuts, soybeans and distilled alcohol are most vulnerable to European retaliatory tariffs. (WSJ) Global flows of goods across borders continue to grow despite rising tariffs , according to the World Trade Organization. (WSJ) Japanese beer maker Asahi Group Holdings is investing more in the U.S. and plans to boost output at a plant in Wisconsin. (WSJ) CONTENT FROM: PENSKE LOGISTICS Gain X-Ray Vision. Gain Ground with Penske Logistics.

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Supply Chain Strategies

Target is revamping its grocery supply chain as consumers shift discretionary spending and rivals like Walmart and Amazon expand their food offerings.

The WSJ Logistics Report's Liz Young writes that the Minneapolis retailer is bringing its supply chain for fresh and frozen food in house . It plans to have a total of nine temperature-controlled food-distribution centers nationwide by 2026. It opened three over the past two years, and has another set for next year in Colorado.

Target used to rely on grocery wholesalers. The company said switching to its own food-distribution centers has given it better end-to-end visibility and helps it make more accurate buying decisions to keep in-demand goods in stock.

Target is racing to capitalize on surging demand for online grocery shopping. Online grocery sales in the U.S. grew in February by nearly a third from a year earlier, according to consulting firm Brick Meets Click. Number of the Day In Other News

U.S. inflation cooled last month . (WSJ)

U.S. crude oil inventories rose for a second consecutive week. (WSJ)

China is rapidly expanding ocean exploration in waters far beyond its shores. (WSJ)

Porsche plans to cut thousands of jobs in coming years and warned that the costs of reshaping the company will hit earnings. (WSJ)

Munitions maker Rheinmetall expects sales to grow by between 25% and 30% this year. (WSJ)

Puma said it plans to slash around 500 corporate positions worldwide. (WSJ)

iRobot warned about its ability to continue as a going concern and started a strategic review of its business. (WSJ)

The Trump administration announced a wave of regulatory rollbacks , including curbs on power-plant and tailpipe emissions. (Reuters)

A fire was extinguished on the tanker involved in a collision with a containership Monday in the North Sea. $(BBC.AU)$

A group including Warburg Pincus and KKR are in talks to acquire German drug-packaging company Gerresheimer. (Bloomberg)

Israeli container carrier Zim said average freight rates in 2024 were up around 50% from the year before, with volumes rising 14.3%. (The Loadstar)

Jitsu, SpeedX, Veho and other alternative parcel carriers are expanding their U.S. coverage . (Supply Chain Dive)

Cathay Cargo's revenue, volumes and yields rose last year. (Air Cargo News)

The Teamsters will appeal a court ruling that bankrupt trucker Yellow isn't liable for not giving union workers enough notice of layoffs. (Sourcing Journal)

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at [mark.long@wsj.com]. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long , Liz Young and Paul Berger .

This article is a text version of a Wall Street Journal newsletter published earlier today.

(END) Dow Jones Newswires

March 13, 2025 07:03 ET (11:03 GMT)

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