The news: Costco is pressuring its China suppliers to lower prices, the Financial Times reported—joining the likes of Walmart, Target, and Home Depot looking to shift the tariff burden onto manufacturers.

Why it matters: Large retailers like Costco and Walmart were able to throw their weight around during the previous inflationary period to extract concessions from suppliers, and consequently keep prices lower for shoppers. But the limits of that strategy are rapidly becoming apparent as manufacturers balk at reducing already razor-thin margins and Beijing takes a heavier hand in managing relations between retailers and suppliers.

• Walmart’s attempt to compel its Chinese manufacturers to lower prices by as much as 10% resulted in severe pushback, both from suppliers themselves and from government authorities.