Walmart asks cosmetics suppliers to look beyond China for sourcing

Our take: Move signals world’s largest retailer hopes to get ahead of tariff impact.... | --------------

Walmart Inc. has asked its cosmetics suppliers to consider sourcing their goods in countries outside of China, one of the first signs that the world’s largest retailer hopes to dilute the impact of the Trump administration’s looming tariffs.

A “large amount” of items in the cosmetics category fall under the most-recent proposed levies on Chinese goods, according to an August 7 email sent from Walmart’s procurement division to some of its cosmetics suppliers.

The list of Chinese goods that could get hit with additional tariffs includes lipstick, eye makeup, powders, shampoo and other haircare products.

The missive asks suppliers if they have facilities outside of China, and if not, whether they would consider investing in some to broaden their sourcing ability.

The email, obtained by Bloomberg, is entitled ‘Potential alternative plan for WMUS D46 orders.’ (D46 is Walmart’s internal code for the cosmetics department.)

“We are closely monitoring the tariff discussions and are actively working on mitigation strategies, particularly in light of potentially escalating duties,” Walmart spokesman Randy...

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