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.
The tariff scenario appears to be connected to recent changes to Amazon’s low-cost Shein and Temu competitor, Amazon Haul .
A Tuesday report from The Information indicated that Amazon Haul will add products from brands like Adidas, Levi’s and Gap that are already stationed in U.S. warehouses. This runs counter to the initial business model Haul promoted in the first place, which touted products directly shipped from manufacturers in China.
Haul was likely to have been affected by the closing of the de minimis provision , which Trump ended when he tacked on the near-universal tariffs. Under that trade exemption, e-commerce companies with factories and warehouses outside the U.S. could send a package with fewer than $800 worth of goods into the country duty-free.
But with that “loophole” now closed, those shipments are now taxed with a processing fee of either 90 percent of their value, or $75 (rising to $150 after June 1).
As the global trade environment becomes more uncertain, Amazon may be gearing up to further scale its logistics network in the U.S.
Amazon is considering a $15 billion warehouse expansion plan that would include nearly 80 new logistics facilities across both U.S. cities and rural areas, according to a Wednesday morning report from Bloomberg.
The properties are expected to be mostly same-day delivery hubs, according to the report, but some projects would also include large, multi-story fulfillment centers packed with robots.
As part of its wider cost cuts established two years ago, Amazon regionalized its fulfillment network and focused on the buildout of smaller sub-same-day delivery centers. As of the 2025 first quarter, there were 65 of these locations throughout the country, according to estimates from supply chain consulting firm MWPVL International.
Amazon has sought to build out more of these locations, which cover 100,000 to 330,000 square feet and fulfill orders in less than five hours, to bolster the company’s same-day delivery capabilities. By November 2024, same-day deliveries jumped 25 percent on an annual basis.
To help fuel the network expansion, Amazon is calling on potential funding partners to submit proposals. According to Amazon, meetings with capital partners are “routine and part of the normal due-diligence process, as we consider potential, future projects.”
The Everything Store is willing to lease the facilities for 15 to 25 years, with Bloomberg saying some of the sites could be funded directly by Amazon.
