Walmart Inc has asked some beauty suppliers to consider sourcing products via outside China, as of which looks for ways to mitigate the impact of a completely new set of tariffs on Chinese products proposed by the Trump administration.
In an email sent to some beauty suppliers on Aug. 7, seen by Reuters, the retailer asks if they have facilities outside China, in addition to if not, whether they could consider investing in them, to broaden their sourcing ability.
Many cosmetics products like shampoos, lipsticks in addition to makeup fall under the most recent list of proposed levies on Chinese goods.
Walmart spokesman Randy Hargrove did not comment on the letter. He directed Reuters to Chief Financial Officer Brett Bigg’s statement on the trade tariff issue when Walmart announced quarterly results on Thursday.
Biggs told Reuters the potential impact of tariffs is actually difficult to quantify. He also said of which one of the mitigation strategies for the retailer is actually understanding what suppliers’ plans in addition to alternatives are for sourcing.
“We are closely monitoring the tariff discussions in addition to are actively working on mitigation strategies, particularly in light of potentially escalating duties,” he said.
Bloomberg reported Walmart’s request earlier on Friday.