Amazon.com, Inc. AMZN has reportedly pulled back on importing a wide range of consumer goods from Asia, leaving vendors stuck with unsold inventory and mounting costs.
What Happened: Amazon has abruptly canceled purchase orders for products made in China, Vietnam, and other Asian countries, reported Bloomberg, citing a document reviewed by the publication and people familiar with the matter.
Affected items include beach chairs, scooters, air conditioners, and more.
One vendor, who has sold beach chairs to Amazon for over a decade, said the company canceled a $500,000 wholesale order just days after President Donald Trump announced plans to expand tariffs on more than 180 countries and territories.
The cancellation email, which did not mention tariffs, claimed the orders were placed "in error" and warned against shipping. By then, however, the goods had already been manufactured.
Amazon noted in its annual report that trade tensions remain a risk to its business. "China-based suppliers provide significant portions of our components and finished goods," the company said in February.
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Why It Matters: On Wednesday, President Trump announced via Truth Social that there will be a 90-day suspension of tariffs. The pause takes effect immediately for countries that have not imposed retaliatory measures.
However, China will continue to face a significantly higher tariff rate of 125%, which Trump attributed to the nation's disrespect toward global trade practices.
According to Trump, over 75 countries have contacted U.S. officials to start negotiations in light of the new tariff policy. Despite the temporary pause, a baseline tariff of 10% will remain in place for all nations.
On the same day, BofA Securities analyst Justin Post reaffirmed his Buy rating on Amazon but reduced the stock’s price target from $257 to $225.
Price Action: Year-to-date, Amazon (AMZN) shares have declined by 13.22%. However, over the last 12 months, the stock has gained 2.77%, according to data from Benzinga Pro.
Benzinga Edge Stock Rankings give AMZN an impressive growth score of 94.20%. Curious how it stacks up against other stocks? Click here to see the full comparison.
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