Amazon reportedly cancels some orders for Chinese goods as tariff war continues
Bloomberg and The Wall Street Journal are reporting that Amazon began canceling some orders from Chinese vendors after President Donald Trump announced tariffs on China and other nations on April 2
Amazon has reportedly canceled some orders for products made in China as the Asian nation and the U.S. continue to face off in a trade war over tariffs.
Amazon canceled orders for beach chairs, scooters, air conditioners and other products from multiple vendors based in China and other Asian countries, Bloomberg reported Wednesday, citing a document reviewed by the news site and people familiar with the matter.
The orders were canceled after President Donald Trump announced tariffs on China and more than 180 other countries and territories on April 2, Bloomberg reported.
The Wall Street Journal also reported Wednesday that e-commerce consultants who work with Amazon vendors and other sellers told the newspaper that Amazon canceled some vendor orders from China after tariffs were announced. Products that Amazon buys directly from vendors account for about 40% of Amazon’s sales, while the other 60% come from products sold on the retail website by small, independent businesses, the Journal said.
Amazon declined to comment to Bloomberg or The Wall Street Journal and did not respond to a request for comment from Paste BN.
In its latest annual report, Amazon said trade restrictions, geopolitical events and other factors "could adversely affect our operating results" because of its dependence on China-based sellers and suppliers.
Amazon canceled $500K order from China saying it was placed 'in error': report
Bloomberg reported that an email sent from Amazon to a vendor, which sold beach chairs made in China to the retailer for more than a decade, canceled an order valued at $500,000 because it was placed "in error." The email did not mention tariffs, Bloomberg said.
The vendor, who spoke to Bloomberg without the use of their name for fear of retaliation from Amazon, said the chairs had already been manufactured and that Amazon had never before canceled an order in such a manner.
Scott Miller, a former Amazon vendor manager who now works as an e-commerce consultant, told Bloomberg that Amazon canceled orders for merchandise made in China and other Asian countries from several of his clients. The cancellations came without warning, he said, and could force vendors to renegotiate terms with the e-commerce company.
“Amazon really holds all of the cards,” said Miller, who is with the business consultant firm pdPlus in St. Paul, Minnesota. “The only real recourse vendors have is to either sell this inventory in other countries at lower margins or try to work with other retailers.”
He and the beach chair vendor said Amazon canceled “direct import orders,” which Amazon would buy as a wholesale purchase in the country where the goods are made and then ship it to the U.S., at which time Amazon would be responsible for tariffs. That method has saved Amazon, which can usually use bulk shipping rates to import items more cheaply than its vendors.
But The Wall Street Journal reported other factors could be at play, too. Amazon had been cancelling contracts with smaller vendors even before the U.S. tariffs were announced in a move to sell more merchandise from third-party merchants, which pay Amazon fees to sell on the site, Chris McCabe, another consultant who previously worked for Amazon, told the Journal.
Concerns about higher prices at Amazon and other retailers, as a result of tariffs, have worried consumers – as have declines in retirement accounts.
Analysts: Tariff war 'an epic debacle'
After Trump issued a pause on most tariffs Wednesday, Wedbush analysts Daniel Ives and Sam Brandeis described the previous week's tariff war as "an epic debacle" and said that "real damage has already been done to the economy."
China remains "the key obstacle to figure out," they wrote to investors, "and this greatly impacts the U.S. tech industry and U.S. consumers on a daily basis going forward."
Mike Snider is a reporter on Paste BN’s Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com
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