Amazon hits back: responds to US tariff hike by canceling Chinese orders

Amazon has canceled several orders from China and other Asian countries in recent days to mitigate the impact of tariff increases targeting China that have reached the United States, Bloomberg has learned. The consequences of the decision are being felt directly not only by suppliers, but also by online retailers: orders for several product categories – including chairs, scooters, air conditioners – have also been canceled.

Tariff war reaction: strategic re-planning

The move comes after Donald Trump announced new global tariff measures last week. The tariffs in question hit China in particular, as well as other Southeast Asian countries – such as Vietnam and Thailand. Although Amazon has not officially commented on the reasons for the cancellations, the timing and the list of countries affected make the connection clear.

The company itself identified international trade disputes as a risk factor in its February annual report. The document indicated that a significant portion of its components and finished products are provided by Chinese suppliers, so tariff increases could have a direct impact on their operations.

Businesses caught in the crossfire

Sudden order cancellations are particularly hard on smaller manufacturers. For example, a Chinese chair distributor that had been manufacturing for Amazon for more than a decade was informed in a single email that the company had “mistakenly” placed several orders that were now being canceled – without specific reasons. The products could not be delivered, and the manufacturer was left with the burden of the goods that had already been manufactured.

Suppliers fear that Amazon will retaliate if they speak publicly about the matter, which is why most of them spoke anonymously, Bloomberg reports. The vulnerability is particularly evident in companies whose business models are almost entirely based on Amazon.