Haggle, Diversify, Raise Prices

News Snapshot:

William Liu, sales director for Rongli Garments, a Chinese manufacturer that makes seamless apparel, said that when the 10% tariff hit in February, his company agreed to lower prices by 5% for Walmart, though it cut into the garment maker’s profit margins. After Trump imposed the additional 10% tariff, Walmart asked his company to raise the discount to 10%. Liu’s company couldn’t afford to absorb the cost and, as a result, Walmart is seeking new suppliers outside China, Liu said. Some pricing negotiations are hitting an impasse because many of these manufacturers are often already operating on razor-thin margins, according...