1. Plot Twist: From "Shifting Blame" to "Taking the Blame"
A month ago, Walmart was arrogantly demanding that Chinese factories bear 25% of the tariffs, threatening "if you don't lower prices, we'll change suppliers." As a result, in less than 20 days, the shelves of American supermarkets were empty — only empty boxes remained in the toy section, and the clothing section's hangers were swaying.

Walmart CEOs, in a panic, directly blocked the entrance to the White House: "If you don't allow China to proceed, we will go bankrupt together!"
On the night of April 28, an email exploded in the Yiwu foreign trade circle: Walmart announced that 1,700 Chinese factories would deliver directly to the US,

All tariffs are borne by the American side! Wang, the owner of a Shenzhen toy factory, extinguished his cigarette: "Last month they were still forcing us to lower prices by 10%, now they suddenly bow down, this drama is more exciting than a TV show!"

2. Walmart's "Mathematical Magic"
On the surface, Walmart bears a loss of $0.5 per item in tariffs, but the actual calculations are ringing loudly:

  • Cutting out the middleman: The agency fees and handling costs that were originally incurred through Hong Kong are all gone, reducing the cost per container by $1,200.

  • Time Compression: The transport cycle from Chinese factories to American stores has been shortened from 42 days to 22 days, and the capital turnover has doubled.

  • Boxing Revolution: Walmart sends engineers to the factory, filling even the gaps in containers with small parts, increasing container utilization from 85% to 98%.
    The head of an electronic factory in Shenzhen calculated: "In the past, using an agency model, profits were less than 5%; now direct shipping to the US has increased the profit margin to 8%!"


3. The "Power Struggle" in the Supply Chain
What’s even harsher is that Walmart is quietly rewriting the rules of the game:

  • Ten-Year Contract Temptation: Committing to sign ten-year contracts with quality factories, provided that production lines must be remodeled according to Walmart standards. The president of the Foshan Lighting Association said: "The payment period has been shortened from 90 days to 15 days, which is even better than lowering tariffs!"

  • Data Monopoly: Requiring factories to connect to Walmart's "Smart Supply Chain" system, making everything from raw material procurement to shipping completely transparent. A hardware factory owner complained: "Now even when workers go to the bathroom, they have to report it!"

  • Fleet Expansion: Walmart's self-operated cargo ships have reached 63 vessels, specifically running on the China-US route. A Ningbo freight forwarding company revealed: "Now they even earn their own freight, leaving freight companies to drink the northwest wind."


4. The "Earthquake" Precursor of Sino-US Trade
Behind this change is a big game:

  • Shipping volume plummeted: cargo volume on the China-US route fell by 12.7% year-on-year, but Walmart's procurement from China grew against the trend by 8%, forcibly taking food from competitors' mouths.

  • Price Transmission: American consumers found that Walmart's T-shirts are 15% more expensive than Costco, yet the shelves are still empty. Analysts point out: "The tariff costs ultimately fell on the American public's shoulders."

  • Disruption of Business Logic: When tariff barriers turn into a supply chain moat, Walmart is using Chinese production capacity to create a "US version of Yiwu." Professor Xu from South China University of Technology said: "This is equivalent to turning Chinese factories into Walmart's overseas workshops."


5. The New Battlefield for Yiwu Bosses
Yiwu Commodity City has been bustling recently:

  • Live Streaming Sales: 260,000 cross-border e-commerce hosts broadcast day and night, selling Yiwu small commodities to the world.

  • New Energy Breakthrough: Photovoltaic components and energy storage devices have begun appearing in Yiwu International Trade City, as traditional toy merchants transform into "selling the sun."

  • Policy Dividend: Yiwu pilot "Market Procurement + Cross-border E-commerce" new model, orders under $150,000 cleared within 24 hours.
    The boss of a scarf factory pointed to the newly arrived photovoltaic orders: "We used to rely on Walmart for our livelihood, now we have to find our own way!"


Conclusion: Who is the winner?
Walmart's "Tariff-Free Direct Procurement" seems to offer benefits, but in reality, it reconstructs the global supply chain using Chinese production capacity. For Chinese factories, this is both an opportunity (stable orders) and a shackle (deep binding).

And Yiwu merchants have long learned to "not put all their eggs in one basket" — when Walmart's big ships dock, they are driving small boats toward a new blue ocean. This supply chain game may just be beginning.