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Walmart (WMT) pushes Chinese suppliers to reduce prices amid Trump tariff fears – report. (00:23) LG Energy reaches deal to buy GM’s stake in Michigan battery JV for $2B. (01:56) Visa (V), American Express (AXP) seek to swipe Apple (AAPL) credit card from Mastercard – report. (02:44)
This is an abridged transcript.
Walmart (NYSE:WMT) is reportedly actively pushing its Chinese suppliers to reduce prices in response to tariffs imposed by the Trump administration.
According to a report by Bloomberg that cites people familiar with the matter, the Chinese suppliers are struggling to comply with these demands due to already thin profit margins. Some Chinese manufacturers are having trouble meeting Walmart’s (WMT) expectations to reduce costs by up to 10% for each round of tariffs.
The pressure on suppliers has led to varied responses, with some manufacturers concerned that any significant reduction in prices could lead them into financial losses.
A few Chinese factory owners have started to explore alternative manufacturing locations elsewhere in Asia, like Cambodia and Vietnam, to maintain both their long-term relationships with U.S. customers and profitability.
The sources added that Walmart (WMT) and its suppliers are negotiating across product categories, not only by country of origin.
Chinese state media criticized Walmart’s (WMT) approach, suggesting that demanding such price cuts could disrupt fair competition and potentially harm both U.S. and Chinese businesses.
The retail giant has been diversifying its supply chain to reduce reliance on China, but the country remains a crucial source for various goods like clothing, toys, and electronics, among others.
It has been widely reported that Costco and Target are also pushing for discounts.
South Korea’s LG Energy Solution said Tuesday it agreed to acquire the assets held by its Michigan electric vehicle battery joint venture with General Motors (NYSE:GM) for $2B.
GM (NYSE:GM) has been scaling back its EV plans because of uncertainty about the future of EV battery production and consumer tax credits under the Trump administration, saying in December that it planned to sell its stake in the Michigan plant.
LG said the transaction costs were part of its capital spending plan announced earlier this year, and could be lower than $2B.
The two companies continue to maintain two other U.S. battery plant joint ventures operating in Ohio and Tennessee.
With the acquisition, LG Energy is expected to produce batteries for Toyota (TM), including the supply of 20 GWh of nickel, cobalt, manganese, and aluminum battery modules annually, enough to power ~200K high-performance electric vehicles.
Visa (NYSE:V) has offered Apple (AAPL) ~$100M to switch its popular co-branded credit card to its payment network from Mastercard. (NYSE:MA), according to a media report.
The Wall Street Journal reported on Tuesday, citing people familiar with the matter that American Express (NYSE:AXP) has been seeking the roles of both network provider and the card issuer.
There’s already been reporting that JPMorgan Chase (JPM) and Synchrony Financial (SYF) have been competing to replace Goldman Sachs (GS) as the bank issuing the Apple Card. The competition among banks is expected as Goldman (GS) pulls back from consumer finance.
Apple (AAPL), however, is expected to choose a network for its card before it selects the bank to replace Goldman (GS), the WSJ said.
Visa (NYSE:V) is aggressively pitching Apple (AAPL), making an offer similar to the upfront payment it offered when Costco selected a network for its card about 10 years ago. Mastercard (NYSE:MA), though, is fighting to keep its role as the card’s network, the same people told the WSJ.
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Catalyst watch:
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Nintendo (OTCPK:NTDOY) is holding a reveal event for the Nintendo Switch 2. A launch of the next-generation console is expected as early as June.
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Fluor (FLR) will hold a strategy update webcast to discuss the company’s strategic plan followed by a live question and answer session.
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Yext (YEXT) will host an Investor Day event. Management will present the company’s vision, strategy, and financial objectives, followed by a live Q&A.
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Marex (MRX) will hold an Investor Day event. The event will feature presentations from the company’s business heads, providing a comprehensive review of operations and growth initiatives.
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Shareholders with Nevro (NVRO) will vote on the takeover offer from Globus Medical (GMED).
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The National Retail Federation will hold a State of Retail & the Consumer 2025 event. BJ’s Wholesale Club (BJ) CEO Bob Eddy, Walmart (WMT) U.S. President John Furner, and Tapestry (TPR) CEO Joanne Crevoiserat will be some of the notable speakers.
Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the red. Crude oil is flat at $71/barrel. Bitcoin is up 0.8% at $85,000. Gold is up 0.5% at $3,100.
In the world markets, the FTSE 100 is down 0.7% and the DAX is down 0.6%.
The biggest movers for the day premarket: TTEC Holdings (NASDAQ:TTEC) +34.9% – Shares climbed after the company said it’s ready to engage with CEO Kenneth Tuchman on his $6.85 a share proposal.
On today’s economic calendar:
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