HONG KONG – Walmart is facing increased scrutiny in China after reports emerged that the retail giant pressured Chinese suppliers for discounts to offset rising tariffs imposed by Donald Trump.

The Chinese Commerce Ministry confirmed on Thursday that officials had met with Walmart executives following a Bloomberg report stating the retailer had asked some suppliers for up to 10% price cuts. Chinese authorities criticized the move, calling it unfair trade practice and warning of potential action if Walmart continued this approach.

The tariff dispute escalated last week when Trump doubled tariffs on Chinese imports to 20%, prompting China to retaliate with tariffs on US agricultural goods. Many businesses, including retailers, are now struggling with rising costs and potential price hikes amid inflation concerns.

Despite the tensions, Walmart, which has been operating in China since 1996, remains a major player in the country’s retail market. It operates over 100 stores in China, including Sam’s Club, and reported a 16% increase in sales last year, reaching $17 billion. The company stated it is working closely with suppliers to navigate the uncertain trade environment.