Walmart(US:WMT) Sou Hu Cai Jing·2025-04-28 14:52Core Viewpoint - The meeting between the CEOs of major U.S. retailers and Trump highlights the significant impact of tariffs on the retail industry, particularly as they face pressure from increased import costs due to tariffs on Chinese goods [2][4][16]. Group 1: Impact of Tariffs on Retailers - Trump has imposed tariffs as high as 145% on Chinese goods, which poses a substantial challenge for U.S. retailers like Walmart [5][9]. - Walmart imported approximately $68 billion worth of products from China in 2024, and under the current tariff structure, it would need to pay $98.6 billion in tariffs if import values remain unchanged [9]. - The gross margin for Walmart is around 23%, indicating that absorbing these tariffs would lead to significant losses for the company [9]. Group 2: Retail Strategies and Consumer Impact - To cope with the tariff pressures, Walmart has two potential strategies: raising prices in the U.S. market or negotiating lower prices with Chinese suppliers [13][15]. - Raising prices could alienate American consumers, who may face significantly higher costs for everyday goods [13][18]. - If tariffs remain unchanged, there could be empty shelves in supermarkets within two weeks, directly affecting the daily lives of American citizens and potentially harming Trump's approval ratings [18][20]. Group 3: Future Trade Relations - Despite the pressures, the three major retailers have resumed trade with China, indicating that the trade war is intensifying rather than concluding [22][24]. - Trump expressed a desire to reach an agreement with China to facilitate business growth, but experts suggest this does not imply a reduction in tariffs [20][22]. - The ongoing situation suggests that the trade conflict will continue to evolve, with potential implications for both U.S. retailers and the broader market [24].