Amazon, AMZN, cancels some inventory orders from China after tariffs

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Amazon.com Inc. has canceled orders for several products manufactured in China and other Asian countries, according to a document reviewed by Bloomberg and sources familiar with the matter—signaling the company may be adjusting its supply chain to reduce exposure to tariffs imposed by President Donald Trump.The canceled items included beach chairs, scooters, air conditioners, and other merchandise sourced from multiple vendors. The cancellations followed Trump’s April 2 announcement of sweeping tariffs on imports from more than 180 countries and territories, including China, Vietnam, and Thailand. While Amazon did not provide vendors with a reason, the timing of the decision led many to believe it was directly tied to the tariffs.An Amazon spokesperson declined to comment. However, in its February annual report, the company acknowledged global trade tensions as a potential risk, stating: “China-based suppliers provide significant portions of our components and finished goods.”Sudden CancellationsThe full extent of the cancellations remains unclear, as does the range of merchandise affected. One long-time vendor, who has been selling Chinese-made beach chairs to Amazon for over a decade, said they received an unexpected email last week informing them that some purchase orders had been placed “in error” and instructing them not to ship the goods. The email, reviewed by Bloomberg, made no mention of tariffs.The vendor, who asked to remain anonymous out of concern for retaliation, said the $500,000 wholesale order was canceled after the chairs had already been produced—leaving them responsible for paying the factory and scrambling to find new buyers. The vendor added that in more than 10 years of doing business with Amazon, the company had never canceled an order in this manner.Scott Miller, a former Amazon vendor manager turned e-commerce consultant, said multiple clients also experienced similar cancellations for products made in China and other Asian nations. He said the decisions were sudden and offered no clear explanation, potentially forcing vendors to renegotiate agreements or seek new sales channels.“Amazon really holds all of the cards,” said Miller, now founder and CEO of pdPlus in Minneapolis. “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.”According to Miller and the beach chair vendor, the cancellations involved “direct import orders”—a model in which Amazon purchases goods wholesale in the country of origin and ships them to U.S. warehouses. In such cases, Amazon acts as the importer of record and is responsible for paying any tariffs when the goods enter the United States.