Amazon.com Inc. has abruptly canceled orders for a range of products manufactured in China and other Asian countries, a move that vendors suspect is tied to new tariffs announced by President Donald Trump. According to a document reviewed by Bloomberg and sources familiar with the matter, the cancellations affect items such as beach chairs, scooters, air conditioners, and other merchandise sourced from countries including China, Vietnam, and Thailand. The timing of these cancellations, which came without warning, has left vendors scrambling to manage financial losses and find alternative buyers.
The cancellations followed Trump’s April 2, 2025, announcement of plans to impose tariffs on goods from more than 180 countries and territories. While Amazon has not officially confirmed that the tariffs prompted the decision, the sudden halt of orders has fueled speculation among affected vendors. An Amazon spokesperson declined to comment on the matter. However, the company’s annual report, released in February 2025, flagged international trade disputes as a risk factor, noting that “China-based suppliers provide significant portions of our components and finished goods.”
Vendors Left in the Lurch
One vendor, who has supplied Amazon with beach chairs made in China for over a decade, described receiving an email from the company last week stating that certain purchase orders had been placed “in error” and would not be fulfilled. The email, reviewed by Bloomberg, instructed the vendor not to ship the products but made no mention of tariffs. The canceled order, valued at $500,000 wholesale, had already been manufactured, leaving the vendor responsible for paying the factory and finding new buyers. Speaking anonymously to avoid retaliation from Amazon, the vendor said this was the first time the company had canceled an order in such a manner.
Scott Miller, a former Amazon vendor manager and now CEO of pdPlus, an e-commerce consultancy in Minneapolis, confirmed that several of his clients also had orders for goods made in China and other Asian countries canceled without notice. Miller described the situation as particularly challenging for vendors, who have little leverage in their dealings with Amazon. “Amazon really holds all of the cards,” he said. “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.”
Direct Import Orders Targeted
The cancellations appear to primarily affect Amazon’s “direct import orders,” a process where the company purchases inventory wholesale from the country of origin and handles shipping to its U.S. warehouses. As the importer of record, Amazon is responsible for paying any applicable tariffs when these goods reach U.S. ports. With Trump’s proposed tariffs looming, the company may be reevaluating its exposure to additional costs, though the full scope of the cancellations and the range of affected products remain unclear.
Amazon’s reliance on international suppliers, particularly from China, has long been a cornerstone of its ability to offer low prices and a vast product selection. However, trade policies like tariffs can disrupt this model, potentially increasing costs for the company and, ultimately, consumers. The cancellations suggest Amazon is taking proactive steps to mitigate these risks, but the move has come at a steep cost for some of its suppliers.
Broader Implications
The abrupt cancellations highlight the vulnerabilities faced by vendors in Amazon’s ecosystem, where the company’s scale and dominance give it significant control over supplier relationships. For vendors like the anonymous beach chair supplier, the financial fallout from canceled orders could be substantial, forcing them to absorb losses or pivot to new markets. Meanwhile, Amazon’s actions may signal a broader shift in its supply chain strategy as it navigates an evolving trade landscape.
As of April 12, 2025, Amazon’s stock closed at $184.87, up 2.01% for the day, reflecting investor confidence despite the tariff-related uncertainties. However, the long-term impact of these cancellations on Amazon’s vendor relationships and supply chain resilience remains to be seen. For now, affected suppliers are left grappling with the consequences of a decision that underscores the challenges of operating in a global market increasingly shaped by trade tensions.
Disclaimer: This article is based on information reported by Bloomberg and reflects the situation as of April 12, 2025. Developments may have occurred since then that are not covered here.
