Amazon.com Inc.
On April 2, President Trump announced plans to slap tariffs on over 180 countries and territories, including China, Vietnam, and Thailand.
In its February annual report, Amazon disclosed international trade disputes as a risk factor.
An Amazon vendor told Bloomberg that the e-commerce giant abruptly canceled its $500,000 wholesale order, leaving the vendor stranded with the manufactured chairs. However, Amazon denied the allegation, according to the report.
Former Amazon vendor manager Scott Miller told Bloomberg that Amazon canceled orders for merchandise made in China and other Asian countries without warning. Amazon has been leveraging bulk shipping rates to save on import costs.
Meanwhile, Amazon's Chinese vendors are looking to hike prices for the U.S. or quit that market in protest against the tariffs, Reuters reported Thursday.
On Wednesday, Trump shared plans to raise tariffs on Chinese imports to 125% from the 104% level already in effect.
Wang Xin of Shenzhen Cross-Border E-Commerce Association told Reuters that the new tariffs would jeopardize the entire cost structure and lead to customs delays and higher logistics costs.
China accounted for nearly half of Amazon's sellers, with over 100,000 Amazon businesses registered in the southern city of Shenzhen generating annual revenues of $35.3 billion, Reuters cited SmartScout.
Imports and exports involving cross-border e-commerce were worth 2.63 trillion yuan ($358 billion) in 2024, Reuters cited China's State Council.
Amazon vendors told Reuters they might need to raise their prices to maintain margins as they run out of inventories.
Dave Fong told Reuters that he has raised prices in the U.S. by up to 30%.
Amazon stock has lost over 13% year-to-date. It faces rising cost pressure from global tariffs, with b cutting its 2025 revenue and EPS estimates. Analyst Justin Post noted Amazon is gaining retail share due to low prices and a strong third-party network despite margin and ad spending concerns. Post projects 2025 revenue of $683 billion (down from $696 billion) and EPS of $5.76 (down from $6.16).
AMZN Price Action: Amazon stock is down 6.57% at $178.64 at the last check on Thursday.
