Walmart stock stands tall despite growing risk of recession

Walmart continues to stand tall, despite the growing risk of a recession in the US. Wall Street analysts still believe that the stock's prospects over the long term are supported by Walmart's Tuesday close at $124.25 per share. What is the best way to support the world's largest retailer's shares? The company has raised its outlook for sales this year, saying it expects net sales to increase by around 4 percent for fiscal year 2023, according to media reports. The American consumer's money is mostly made in China when they spend. The support of Chinese manufacturing has been a factor in the steady growth of Walmart. According to the Alliance for American Manufacturing, there are estimates that Chinese suppliers make up 70 to 80 percent of Walmart's merchandise in the US. Walmart's development is a microcosm of the inextricable nature of China-US trade. The inflow of China's inexpensive and high-quality products has reduced the cost of living for American households while the US government has benefited from the sales of Chinese products in the US. It is because the economies of China and the US have become inseparable, and the inflows of Chinese products have been inseparable. The trade value and trade surpluses of China and USA have been on an upward trend for the past two years despite the impact of the global pandemic and geopolitical volatility. There is growing awareness that higher tariffs have hurt US businesses and consumers who are most likely to bear most of the additional costs. The US retailers are unable to find a comprehensive alternative to Chinese-made suppliers. With the US economy becoming more fragile due to soaring inflation, unnecessary costs have become particularly unbearable. The Federal Reserve has been unusually aggressive with interest rate hikes, as the US economy is facing its most serious inflation challenge in four decades. There are fears that the US may slip into a recession next year. The US has the urgent need to tame inflation to help alleviate its domestic economic woes, and tariff cuts are the most direct and feasible means of curbing inflation. President Joe Biden and the US Treasury Secretary Janet Yellen have spoken out about lowering tariffs on Chinese goods in recent months, but there has been no real move yet. Politico reported on Tuesday that Biden could be close to lifting tariffs on just $10 billion worth of Chinese goods while opening a new exclusion process for firms to win additional relief. If the news is true, it is a clear indication of the Biden administration's reluctance to give up the China tariffs as leverage. The reported figure is so small that Walmart's sales of Chinese merchandise alone may well exceed $10 billion, compared to the more than $300 billion worth of Chinese imports affected by the tariffs. Washington's time is not on Washington's side. The longer it drags on, the more damage it will do to the economy, and the more voters change their vote.