Walmart is getting caught in the middle of an escalating trade war between the United States and China.

Chinese officials confirmed on Thursday they had met with executives from the US retail giant, following a news report that it had pressured its suppliers in China for discounts to cope with rising tariffs imposed by Donald Trump.

“Our relevant departments have reached out to Walmart to further understand the situation, and the company has provided an explanation,” He Yongqian, a spokesperson for the Commerce Ministry, told a regular press briefing. She did not provide further detail.

Trump doubled tariffs on all Chinese imports to 20% as of last week. In response, China has announced a fresh round of retaliatory tariffs, covering US agriculture imports, which took effect Monday.

Many businesses are struggling under Trump’s chaotic tariff announcements, which have escalated trade tensions between the world’s two largest economies. Retailers have told CNN that they may have to raise prices at a time when many customers are already feeling financial pressure and the pinch of inflation.