Walmart is setting a precedent that could possibly be replicated by consumer electronic retailers wherein it is pushing Chinese suppliers to offer big price reductions to offset the tariffs being imposed by President Trump.
Some of Walmart’s Chinese suppliers, including producers of kitchenware and clothing, have been asked to lower their prices by as much as 10% per round of tariffs, reported Bloomberg.
Suppliers’ which generally have thin margins are yet agree to the requests. A reduction of more than 2% often results in a loss for suppliers.
Some of these suppliers who are trying to reduce their own manufacturing costs have had their own upstream vendors refuse to cut prices more than 3%. It has reportedly resulted in those suppliers now turning to Vietnam to purchase cheaper parts.
In an attempt to offset tariffs levied by the US against foreign imports, Australian kitchen appliance maker Breville has already begun to move production out of China and is also rushing stock into the US ahead of any further tariffs that might be levied in the future.
The company said that its move to shift 120v production out of China “is in full swing” and that it would “continue to adapt and adjust as the rules on the field change.” Mexico or South-East Asia is expected to absorb some of the production capacity.
“The unknown that we are working through is how, and when, US trade policy might further evolve with various trading partners, particularly China,” said Jim Clayton, group CEO at Breville.
As of July 2025, around 40% of Breville’s purchases were subject to the US-China trade relationship, and by January 2026 the appliances group expected this to drop to only 10% and then further reduce in the second half of 2026.
With a weak Australian dollar, appliance prices may rise over the coming months in Australia. “Suppliers are talking about price rises at the moment, and if they’re talking about it, it generally means in the next three months, we may see some price increases come through,” Terry Smart, CEO of JB Hi-Fi told the Australian Financial Review recently. “Fridges, washing machines, dishwashers, those type of products – there is a potential for that to happen, especially if the Australian dollar stays low like it is.”
Some CE companies have been extensively engaging with suppliers to work on reducing prices across the supply chain so that they can permanently reduce the prices of their offerings.
Nanoleaf, whose smart lighting solutions are available at JB Hi-Fi, for example has already committed to permanently dropping prices on several of its most popular products.
The company has termed its latest move as a SmarterLife pricing initiative that aims to bring expensive products to a more accessible point.
Nanoleaf has been working with both the manufacturing and supply chain teams for the past two years on this initiative that has now resulted in an approximately 36% price reduction for some items.
