Walmart resumes requests to China after tariff climbing between USA and Beijing

Chinese manufacturers located in the provinces of Jiangsu and Zhejiang began to resume the shipping of goods to the United States after instructions by large American retailers, including Walmart, according to South China Morning Post.

The measure occurs weeks after mutual tariff increases between China and USA interrupt orders and significantly reduce the volume of shipments.

A supplier of office supplies and ningbo-based stationery in Zhejiang province said he received Walmart direct guidance on Monday to resume deliveries at a normal pace.

The company said the costs arising from the new tariffs imposed by the United States will be absorbed by US customers themselves.

“Our longtime partner, Walmart, told us to start sending more [para os EUA] And we will not need to bear the extra costs of new tariffs [sobre produtos chineses]”The company’s vice president told the newspaper.

Other exporters also confirmed similar notifications. Paul Tai, Regional Director of Mainetti-a company that projects and exports hangers and packaging to the US and European markets-reported that suppliers in Jiangsu were warned by major retailers about the resumption of orders. According to him, the first signs of change appeared on April 23.

Since April 2, when the then US President Donald Trump announced a new tariff package classified as “reciprocal,” many American importers have suspended or canceled orders made to China.

According to Tai, requests fell more than 40% in April compared to the same period of the previous year.

In response to the instability generated by tariffs, Chinese suppliers began to modify the terms of shipping.

According to Tai, there is a growing trend of use of the FOB (Free on Board) model, in which importers assume charges and risks from boarding.

The model replaces DDP (DDP), in which suppliers are responsible for total costs, including taxes and import tariffs.

“Due to the unpredictability of tariffs, many suppliers are charging FOB instead of DDP. This allows US importers to manage US import tariffs with their local dispatchers, which can sail the constantly changing regulations,” Tai said.

This year, the United States imposed additional rates of up to 145% on Chinese products, increasing the average effective rate to about 156%.

In some cases, tariffs reach 245%, as a statement from the White House. In response, the Chinese government has applied 125% rates on all American products, accumulating previous taxes.

Despite intensified rhetoric, Trump recently indicated interest in resuming negotiations with Beijing. At a press conference at the Oval Hall, the former president stated that the tariffs could be “substantially” reduced. Days later, in an interview with the magazine Timehe said he was talking to Chinese President Xi Jinping.

However, China’s Foreign Ministry denied that such a conversation occurred. Still, academic sources suggest that the two countries continued to use secondary channels to maintain technical negotiations.

“Regardless of whether they have been talking by phone or not, I would be surprised if both countries had not used secondary channels for work discussions,” said a teacher of international studies in Shanghai on anonymity.

The same teacher noted that Walmart’s decision to resume orders, even bearing the costs of tariffs, may indicate an expectation of the short -term tariff agreement or suspension.

Xu Weijun, a public policy researcher at the University of Technology of Southern China, Guangzhou, associated the resumption of remittances with internal pressures exercised by large US companies about government tariff policy.

“The stronger counterattacks than China expected may have frustrated Trump’s strategies and impacted American multinationals,” said Xu. “Corporate titans will have their means to convey their position to Trump and even force some changes.”

Also according to XU, although there is the possibility of negotiation between the parties, the Chinese exporters must maintain contingency plans in the face of political and commercial instability.

“Trump will slowly reduce his fares,” he said. “When the two countries return to the negotiating table, it will still take time and a lot of round and return to get it back to the tracks.”

Recent changes in the behavior of retailers and suppliers reflect a new moment in the commercial dispute between the two countries.

The resumption of exports indicates a possible flexibility from US companies, despite maintaining high tariffs. The scenario, however, remains uncertain in the absence of a formal agreement and the continuity of clashes between Washington and Beijing.