Overview

• Amazon canceled wholesale orders for products made in China and other Asian countries following the announcement of new tariffs on April 2.
• A vendor reported losing $500,000 after Amazon canceled an order for beach chairs, citing an 'error,' after production was completed.
• The cancellations primarily affect 'direct import orders,' where Amazon typically serves as the importer and manages tariff liabilities.
• Vendors now face increased financial risks, including tariff exposure and the challenge of finding alternative buyers or renegotiating terms.
• The move reflects broader trade tensions and highlights Amazon's significant leverage in global supply chains, as businesses adjust to the new tariffs.