Amazon is trying to get “low double-digit price cuts” from sellers to offset tariff hits to its margins
To combat margin fallout from the Trump administration’s tariffs on China, Amazon is getting tougher on its suppliers, hoping to extract “low double-digit price cuts” from the sellers, the Financial Times reports.
Amazon sellers, of course, import a big chunk of the platform’s goods from China and have long been squeezed by the e-commerce giant.
The FT noted that Amazon’s playbook was similar during the tariffs from President Trump’s first administration.
Earlier in this Trump administration, Amazon had been moving up shipments from China to get ahead of tariffs. More recently, it’s been outright canceling orders from China.
Goldman Sachs says tariffs could cut 6% to 12%, or $5 billion to $10 billion, from Amazon’s operating profits this year.
The FT noted that Amazon’s playbook was similar during the tariffs from President Trump’s first administration.
Earlier in this Trump administration, Amazon had been moving up shipments from China to get ahead of tariffs. More recently, it’s been outright canceling orders from China.
Goldman Sachs says tariffs could cut 6% to 12%, or $5 billion to $10 billion, from Amazon’s operating profits this year.
