Terry Clear, Director of Replenishment and Sales Insights at 8th & Walton, discusses the impact of ongoing trade uncertainty on Walmart suppliers for 2026. Terry provides actionable advice on how suppliers can prepare for volatility, manage shipping rates and cargo demand, balance inventory and cash flow, and make effective sourcing decisions amid shifting tariffs and AI-driven market changes.
Lainie: How should suppliers be planning for 2026 amid so much trade uncertainty?
Terry: Uncertainty—or volatility—is the new normal. It’s going to continue for an extended period. Who knows how long? Suppliers need to be more nimble and take more factors into consideration in their sourcing decisions.
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Lainie: One thing that’s been coming up in the media is that shipping rates and cargo demand are dropping right now. What can suppliers do to protect their margins?
Terry: This is another area where it’s not as straightforward as it used to be. Suppliers need to look at the cost savings they can get from lower transportation costs. Do they want to bring in more inventory now? They have to balance that with inventory carrying costs and cash flow.
This is where I talked about the many different decisions suppliers must make in an unsettled or volatile environment—timing, sourcing costs, inventory control, inventory carrying costs, and other related factors.
Lainie: If tariffs continue, what is the best move for suppliers to keep their products affordable and on the shelves? And there’s a second part to this question: I’ve been reading about AI agents recommending alternative products. Competition could be happening in this new way of consumers being introduced to and finding products. So what can suppliers do?
Terry: This also ties back to the sourcing decisions suppliers need to make. One thing to look at is whether there are countries less susceptible to higher tariffs being imposed—and whether suppliers can shift sourcing there. They also need to consider how much of those tariff costs they can afford to absorb.
There are many more complex sourcing decisions that suppliers need to evaluate, but they don’t have to do it in isolation. All suppliers are facing the same challenges. The one that wins is the one that figures out this puzzle the best.
