1 week Ago By Joe Gallop
Amazon has abruptly cancelled several large product orders from Chinese and other Asian suppliers following the US trade tariffs announced by President Donald Trump, Bloomberg has reported. The move has already rattled vendors and raised concerns among Australian suppliers relying on the e-commerce giant’s vast US retail network. Sources close to the matter say the cancellations, which covered items such as beach chairs, scooters, and air conditioners, came without warning, just days after Trump’s April 2 announcement imposing new tariffs on imports from over 180 countries, including China, Vietnam and Thailand.
At the heart of the disruption are Amazon’s “direct import” orders – bulk wholesale deals where Amazon purchases goods directly from overseas manufacturers, ships them to US warehouses, and assumes responsibility for customs and tariff duties. By pulling out of these deals, Amazon is shifting the cost burden back onto suppliers. One long-time vendor affected by the decision told Bloomberg that a US $500,000 order for Chinese-made beach chairs was cancelled after production had already been completed.
Industry consultant and former Amazon executive Scott Miller confirmed the cancellations impacted several of his clients across Asia. While Amazon has refused to comment, the company acknowledged in its annual report that ongoing trade disputes pose a significant risk to its supply chain, especially due to its dependence on Chinese suppliers for both components and finished goods. With Amazon’s stock already down 21% this year – significantly underperforming the broader market – analysts are warning the ripple effects could be far-reaching.
Robert W. Baird & Co. recently slashed its 2025 revenue forecast for Amazon, citing increased costs and global market instability tied to the tariffs.
For Australian brands and suppliers eyeing the lucrative US market via Amazon’s platform, the developments are a warning shot. Many Aussie electronics and consumer goods vendors ship via similar direct import arrangements or partner with third-party logistics providers based in Asia. Industry insiders also point out that Amazon has been steadily shifting toward favouring third-party sellers over direct wholesale arrangements – a trend now likely to accelerate.
Independent merchants already make up 60% of Amazon’s total online sales. As the trade war ramps up, expect global supply chains – and even Australian exporters – to feel the heat..
