90 Days to Breathe: What Walmart Suppliers Need to Know About the Tariff Pause on Chinese Goods

A Pause Worth Paying Attention To

On May 12, the United States and China agreed to a 90-day suspension of their most recent tariff increases. The U.S. dropped its tariffs on Chinese imports from 145 percent to 30 percent. In response, China scaled back its retaliatory tariffs on American goods from 125 percent to 10 percent. The pause is in place until August 10.

It’s a meaningful shift for suppliers, especially those feeling the pressure of sourcing from China. But this isn’t a solution—it’s a countdown. There’s time to adjust, but not much.

What 1P Suppliers Should Be Doing Right Now

If you’re supplying Walmart directly, this is your moment to reassess everything from landed cost to shipment timing. Thirty percent is still a heavy burden, even if it’s better than what was looming.

Here’s what to focus on:

• Move goods sooner while the reduced tariff is active
• Recheck cost assumptions and margin plans
• Communicate early with your Walmart merchant
• Prepare for scenarios where tariffs spike again in Q3

Suppliers who stay ahead of the curve will be better positioned if conditions change fast, which they often do.

For Marketplace Sellers, Timing Still Matters

Sellers on Walmart Marketplace may feel the impact differently, but the opportunity to optimize is just as real. Even if you’re not importing at scale, the ripple effects across pricing, inventory, and lead time will be felt.

Consider this a moment to:

• Adjust pricing to improve competitiveness
• Clear out high-cost inventory you’ve been holding back
• Refresh PDPs to reflect more accurate availability
• Tighten fulfillment practices before the back-to-school ramp

Walmart’s algorithm rewards reliability and value. This pause can give you a temporary edge—if you use it.

The Bigger Picture: Stay Ready

No one should count on this being the new normal. If negotiations stall, tariffs could rise again without much warning. Walmart will stay focused on price leadership, and suppliers will be expected to adapt accordingly.

Diversified sourcing, smart forecasting, and tight execution are no longer best practices. They’re expectations.

Final Thoughts

This isn’t about catching a break. It’s about using the break wisely. Walmart suppliers have 90 days to protect profitability, preserve shelf space, and strengthen buyer relationships.

Whether tariffs stay low or bounce back, those who act now will be the ones who come out ahead.

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