Amazon (AMZN) is canceling some wholesale orders from Asia that it directly imports and ships to its warehouses as it begins to respond to President Donald Trump’s trade war, according to a new report.
Bloomberg, citing a document and unnamed sources familiar with the matter, said that Amazon has canceled some orders on which it would be responsible for paying tariffs. The orders, which include air conditioners, beach chairs, and scooters, were nixed after Trump announced his sweeping tariffs last week on almost all of the country’s trade partners.
Amazon, which hasn’t commented on the canceled orders, did not cite the tariffs as a reason for the decision, but vendors believe it is directly related to the trade policy upheaval due to the timing.
Scott Miller, a former Amazon vendor manager who now works as an e-commerce consultant, told Bloomberg many of the companies he works with in Asia saw order cancellations.
“Amazon really holds all of the cards,” Miller said. “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.”
Miller and a different vendor who spoke anonymously to Bloomberg explained Amazon was axing wholesale inventory orders that it buys and then distributes to its warehouses. Direct-buy items make up about 40% of Amazon’s products.
While many CEOs have criticized Trump’s trade war, Amazon CEO Jeff Bezos — who donated to Trump’s inaugural committee and attending his inauguration — has been silent on the new policy. Amazon’s stock has dipped more than 12% since the April 2 announcement, which Trump deemed “Liberation Day.”
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