Amazon has canceled orders for a number of products made in China and other Asian countries. This may indicate that the company is trying to reduce its dependence on the duties imposed by US President Donald Trump.
The company has canceled orders for beach chairs, scooters, air conditioners, and other goods from various suppliers. This follows Trump’s announcement on April 2 of plans to impose duties on imports from more than 180 countries and territories, including China, Vietnam, and Thailand. Suppliers suspect that the duties were the reason for Amazon’s move.
A company spokesperson declined to comment. At the same time, in its annual report released in February, Amazon listed international trade disputes as one of the risks to its business.
«Suppliers from China provide a significant portion of our components and finished products», — the report says.
It is not yet known how widespread the order cancellations are and which products they concern.
One of the suppliers, which has been selling beach chairs from China to Amazon for more than 10 years, received a letter informing them that some orders that the company allegedly made «by mistake» were canceled. The letter did not mention any duties. The supplier said that a $500,000 wholesale order had been canceled after the products had been manufactured — now he had to pay the factory himself and look for new buyers. For fear of reprisals from Amazon, he wished to remain anonymous. According to him, the company has never canceled an order in this way before.
Scott Miller, a former Amazon manager and now an e-commerce consultant, said that Amazon also canceled his clients’ orders for products from China and other Asian countries. According to him, the cancellations occurred without warning and may force suppliers to reconsider the terms of cooperation with Amazon.
Both Miller and the chair supplier noted that these are direct import orders — that is, orders of goods that Amazon places directly in the country of production with delivery to its warehouses in the United States. In this case, it is Amazon that acts as the official importer and pays the duties.
Amazon has been using this import scheme for many years, which allows it to reduce costs due to wholesale shipping rates. However, canceling such orders shifts the cost of duties back to the suppliers if they deliver the products to the United States.
About 40% of the goods sold on Amazon’s website are purchased directly from suppliers. The rest is sold by independent sellers who rent Amazon’s digital storefronts and pay commissions for logistics and advertising.
Trump’s tariffs have already caused fluctuations in global markets. Many companies are raising prices, raising fears of a recession. On Tuesday, Robert W. Baird & Co. Inc. lowered its 2025 revenue forecast for Amazon, citing the impact of tariffs. Amazon shares have fallen by about 21% this year, while the S&P 500 index has lost 15%.
Apple has been forced to speed up deliveries due to Trump’s customs policy. It has brought 5 iPhone airplanes to the US in 3 daysto be in time for the introduction of new tariffs.
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