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Amazon (Nasdaq: AMZN) has canceled orders for several products made in China as the U.S.-China tariff war is escalating, as per a latest Bloomberg report.
The main product categories cancelled by Amazon are beach chairs, scooters, and air conditioners. Besides China, the e-commerce giant has also cancelled orders from vendors in Vietnam and Thailand.
The U.S. President Donald Trump hiked duties on Chinese imports to 104% as he announced sweeping tariffs on more than 180 countries and territories on Apr. 2.
In response to the aggressive American policy, China said it will "fight to the end.” On Apr. 9, the dragon raised “retaliatory tariffs” on U.S. imports from 34% to 84%.
Amazon has been following the “direct import orders” process in which it buys inventory wholesale in the manufacturing countries and ships the products to its warehouses in the U.S. after paying tariffs, sources told the publication.
Amazon can import goods in bulk shipping at rates lower than vendors, a practice it has followed for years. Now, the burden could fall on vendors themselves.
The cancelling emails sent by Amazon don’t mention tariffs, Bloomberg added.
The U.S. stock market is trying to recover after registering losses since Apr. 2.
The AMZN stock rose a modest 0.13% to $170.89 at the time of writing even as it kept flickering. Its value has dipped more than 14% since “Liberation Day.”
Cathie Wood’s crypto- and tech-focused investment firm ARK Invest has capitalized on this dip, acquiring $15 million in AMZN since Apr. 2.
ARK Invest has also increased its position in Nvidia Corp. (Nasdaq: NVDA) by $33 million during the period.
Note that Nvidia is an important player in the crypto mining industry. The industry has also taken a hit due to the tariffs, as the mining hardware is mostly manufactured in China.