China’s Ministry of Commerce has held talks with Walmart after the U.S. retail giant reportedly requested price cuts from Chinese suppliers to offset tariff costs, a state-backed media outlet said Wednesday.

The announcement came after Bloomberg reported last Thursday that Walmart had asked some Chinese suppliers, including makers of kitchenware and clothing, to lower prices by as much as 10% for each round of U.S. tariffs.

“If this is true, it is unreasonable for Walmart to require Chinese suppliers to bear all tariffs, which will disrupt fair competition and foreign trade order,” the report said, according to a CNBC translation of the Chinese.

Walmart’s reported move “may create the risk of supply chain disruption and harm the interests of Chinese and American companies and American consumers,” it added, warning of further actions if the company fails to correct its course.

U.S. President Donald Trump’s extra 10% duty on Chinese goods took effect on March 4, following a 10% tariff imposed on Feb. 4.

Most Chinese suppliers are already grappling with “razor-thin” profit margins as the U.S. company procures goods at big discounts to maintain its competitive advantage, according to the Bloomberg report.

Chinese and American companies should “work together” to respond to U.S. “unilateral imposition of tariffs,” Chinese state media said.