- Amazon has canceled multiple inventory orders from China to minimize exposure to Trump’s steep tariffs.
- The company’s stock has dropped over 12% in the past month amid growing trade war concerns.
- China retaliated with 84% tariffs, escalating tensions that could push the U.S. closer to a recession.
In the latest twist of what’s becoming a messy trade standoff, Amazon has reportedly started pulling the plug on inventory orders from China. The move comes as part of the company’s effort to dodge the growing heat from President Trump’s newly ramped-up tariff strategy, according to Bloomberg.
Last week, Trump’s administration rolled out a 10% baseline tariff as part of his so-called “Liberation Day” policy. But that was just the warm-up. This week? A jaw-dropping 104% tariff on Chinese imports—yeah, things escalated fast. And it’s not just headlines—this is starting to hit the real economy, hard.
Trade War Fallout Sends Ripples Through U.S. Markets
The beginning of 2025 hasn’t exactly been smooth sailing. Trump’s aggressive economic posture is shaking things up, and not in a good way—at least not for Wall Street. The Dow Jones tanked more than 2,000 points in a matter of days, and Amazon hasn’t been spared either. Shares of AMZN have fallen over 12% in just the last month, though they bounced back a bit to $173 midweek.
Trying to stay ahead of the curve, Amazon is now reportedly cutting ties with multiple China-based vendors. Orders for certain goods—especially those set in motion before Trump’s April tariff blast—have been quietly scrapped. And it’s not just China in the crosshairs. Some suppliers from other parts of Asia are also feeling the chill.
Tensions Mount As China Hits Back
Amazon had already waved a bit of a red flag in its February annual report, citing “international trade disputes” as a potential hazard. The company admitted it leans heavily on China for components and finished goods. And now that China has countered with its own tariff salvo—an 84% hit on U.S. imports—the writing’s on the wall: this is just the beginning.
Unless something changes soon, the world’s two largest economies could be headed into a full-blown trade war. And for companies like Amazon, which operate across global supply chains, the fallout might get messier before it clears up.
