In a major shakeup, Amazon has reportedly canceled multiple orders from Chinese and other Asian vendors. The decision comes on the heels of President Donald Trump’s announcement of new tariffs affecting over 180 countries, including China. Products such as beach chairs, air conditioners, and scooters were affected, disrupting long-standing vendor relationships.
Trump’s Tariffs Spark Immediate Industry Response
Following the tariff declaration on April 2, Amazon began pulling back from direct import deals. According to Bloomberg, one Chinese vendor lost a $500,000 order for beach chairs — a product they had supplied for more than a decade. The reason given? An error. But industry experts say the real cause was tariffs and supply chain recalibrations.
Small Vendors Caught in the Crossfire
Consultants working with Amazon vendors confirmed to both Bloomberg and The Wall Street Journal that multiple cancellations happened without notice. Vendors who had already manufactured goods are now left with unsold inventory. Many lack alternative sales channels or the ability to renegotiate terms with Amazon, putting their businesses at significant risk.
Amazon’s Shift Toward Third-Party Sellers
Industry insiders also suggest that Amazon may be using tariffs as a pretext to accelerate its transition from wholesale purchases to third-party sales. By relying more on small merchants who list and sell directly on its platform, Amazon can reduce financial liabilities while increasing fee-based revenue. This model also shifts tariff burdens away from Amazon and onto individual sellers.
What It Means for Consumers and the Economy
Experts warn that such strategic shifts could lead to reduced product availability and higher prices. Additionally, the sudden cancellations reflect broader uncertainties in global trade. Tariffs once seen as political tools are now directly reshaping how corporations like Amazon manage their global supply chains.
Damage Already Done, Say Analysts
While the White House has temporarily paused most tariffs, Wedbush analysts argue that the damage is already done. They call the tariff episode an “epic debacle” with long-lasting effects on the economy, particularly in tech and retail. As trade tensions persist, businesses and consumers alike should prepare for further disruptions.
