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It was only a matter of time before the new tariffs on China forced the hand of America’s largest e-commerce company.
Amazon has reportedly canceled orders for multiple products made in China and other Asian countries, according to a report from Bloomberg.
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Amazon’s China connection is vast. In 2024, China-based sellers took up more than 50 percent of market share on the tech titan for the first time, according to data from e-commerce intelligence firm Marketplace Pulse.
But Chinese goods dominate the marketplace like no other. More than 70 percent of Amazon sellers and brands say they source their products from China, according to a survey conducted last year by Amazon seller software platform Jungle Scout. That origin number is well beyond that of second-place U.S. sourcing (30 percent) and third-place India (14 percent).
The Seattle-based company doesn’t officially disclose the amount of goods coming out of China and neighboring sourcing countries. But in its February annual report, it said “China-based suppliers provide significant portions of our components and finished goods.”
A document viewed by Bloomberg reportedly showed that orders for beach chairs, scooters, air conditioners and other merchandise from multiple Amazon vendors were halted after President Donald Trump’s “Liberation Day” announcement on April 2.
These canceled orders mostly affect Amazon’s first-party vendors, manufacturers and wholesalers that sell products directly to Amazon, which then resells them to customers. The vendors often rely on bulk deals and shipping arrangements made through Amazon.
According to the report, the vendors received no warning of the cancellations. While Amazon serves as the importer of record—which means it pays tariffs when the products reach U.S. ports—cancelling the orders puts the tariff exposure back on the vendor.
Sourcing Journal reached out to Amazon.
Amazon’s abrupt cancellations come as chief competitor Walmart—and the rest of retail—tries to navigate the uneasy landscape. Walmart said it currently gets one-third of its U.S. inventory from abroad, with China being one of its largest sourcing markets for products like apparel, electronics and toys.
Reports ahead of Trump’s country-specific tariff declaration indicated that the retail giant was pushing its Chinese suppliers to cut prices to offset the impact of the looming duties. Bloomberg reported that Walmart was demanding that some Chinese manufactures offer price cuts of up to 10 percent for each round of Trump tariffs.