In what is yet another part of the continued aftermath of US President Trump’s Liberation Day, Amazon has reportedly canceled some inventory orders from China following the country’s tariffs. Indeed, the e-commerce juggernaut is seeking to “reduce exposure to tariffs,” according to a Bloomberg report.
The Trump administration imposed a 10% baseline tariff in its recent announcement last week. However, this contentious relationship with China and rising geopolitical tensions saw them increase those import duties to 104% this week as a trade war looks to be brewing.
JUST IN: 🇨🇳 Amazon cancels inventory orders from China due to tariffs.
— Watcher.Guru (@WatcherGuru) April 9, 2025
Also Read: European Union to Impose Up to 25% Tariffs on US Goods
Amazon Cancels Chinese Orders as Trade War Heats Up
It has certainly been a troublesome start to 2025 for the US economy. With returning President Donald Trump adopting an aggressive economic policy to balance trade, markets in the country have plummeted. Indeed, the US stock market has fallen massively, with the Dow Jones Index dropping over 2,000 points.
Now, Amazon is taking action, as the firm has canceled inventory orders from China due to the presence of increased US tariffs. Indeed, the company has seen its stock falter due to the import tax plan. Specifically, AMZN stock has dropped more than 12% over the last 30 days despite a slight rebound to $173 on Wednesday.
Also Read: Goldman Sachs: Trump Tariffs Put US in ‘Event-Driven’ Bear Market
According to Bloomberg, the company has canceled multiple products made in China and other Asian countries. Specifically, the move affects several merchandise items from vendors that had orders halted after the early April Liberation Day announcement.
In February, Amazon identified “international trade disputes” as a risk factor in its annual report. “China-based suppliers provide significant portions of our components and finished goods,” the company said. The growing trade war continued with China announcing new 84% retaliatory tariffs. Indeed, it appears things will get far worse before they get better for the US economy, currently on the path toward a recession.