Beijing, China - Chinese authorities are in discussions with Walmart over how to respond to President Donald Trump's tariff hikes after the US retail giant demanded local suppliers cut their prices.

"A source revealed to us that on March 11, the Ministry of Commerce and other relevant departments held talks with Walmart," Yuyuan Tantian, a social media account under state broadcaster CCTV, reported.

"The reason for the talks was Walmart's demand for significant price reductions from some Chinese suppliers, attempting to shift the burden of US tariffs on China onto Chinese suppliers and consumers."

China's commerce ministry did not immediately confirm that talks were underway with Walmart.

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Earlier this month, Trump raised the 10% blanket tariff he previously imposed on Chinese products to 20%, citing Beijing's supposed failure to stem the flow of deadly fentanyl precursors into the US.

Beijing responded by slapping its own tariffs of up to 15 percent on a range of US agricultural goods including soybeans, chicken and pork. Washington has now reacted to this move by imposing additional retaliatory tariffs on China.

China's US Embassy warned that Beijing is willing and ready to fight "any type of war" against the US if Trump continues to escalate his tariff regime. Foreign Minister Wang Yi also vowed to "resolutely counter" Trump's trade war.

In regard to Walmart, the CCTV-affiliated account said it "believes that there are several key points worth noting from this discussion," including that Walmart's demand for price cuts may be in breach of contract.

"If Walmart insists on this course of action, the consequences for the company will go beyond just a discussion," it added.