Amazon Pressures Suppliers For Discounts, May Show Tariff Related Costs On Haul Site
Amazon.Com Inc (NASDAQ:AMZN) canvassed its suppliers to offer low, double-digit discounts on homeware to consumer electronics as U.S. President Donald Trump’s tariffs kicked in.
The Trump administration imposed tariffs of up to 145% on China, prompting Amazon to deal more aggressively with suppliers sourcing from China, the Financial Times reported Tuesday, citing vendor consultants. The tariffs also affected vendors from other countries.
Benzinga has reached out to Amazon for comments and will update the story.
Also Read: Amazon Sellers Hike Prices On Essentials As Trump China Tariffs Squeeze Margins
Amazon took a cue from rivals like Costco Wholesale Corp (NASDAQ:COST) and Walmart Inc’s (NYSE:WMT) move as they attempted to protect their margins, which they did in response to Trump’s first term in office.
Goldman Sachs analysts told the Financial Times that it expects the tariffs to affect 6%-12% of Amazon’s operating margins in 2025.
Several logistics providers and analysts told the Financial Times that Amazon had brought forward shipments and had pivoted to purchasing goods from suppliers with U.S. stock as Trump took charge in January.
Amazon had taken a less aggressive stance elsewhere, offering to bear up to a third of tariffs on non-China imports, which were at 10% during a 90-day pause period, the Financial Times cited consultants.
Analysts will closely follow Amazon Prime Day, which occurs twice a year in July and October. The summer edition generated $14.2 billion in 2024, the Financial Times cited Adobe Analytics. However, this year’s event will likely feature less steep discounts.
The White House criticized Amazon for reportedly planning to display the cost of tariffs next to the total price of products on its site, CNBC reported Tuesday. Close to 70% of products sold by Amazon are made in China.
White House press secretary Karoline Leavitt drew parallels with the Biden administration hiking inflation to “record levels in 40 years”.
Amazon denied the report, citing its plans to reveal the tariff cost it added to its products.
Separately, Jeff Stein of the Washington Post tweeted that Amazon Haul has considered listing import price duties on certain products, something it had never considered for the main website.
Price Action: Amazon stock closed lower by 0.17% to $187.39 on Tuesday.
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