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Amazon, the largest online retail dealer in the world, is preparing to feel President Donald Trump.
Definitions are the taxes that companies pay to import goods from abroad, and the additional cost is often transferred to consumers through price increases.
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On April 2, Trump announced a 10 % “baseline” tariff for all countries that import goods to the United States, where nearly 60 countries witnessed higher tariff rates, in an attempt to liberate the nation from its dependence on imported goods.
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However, on April 9, Trump replaced the gears and increased my 34 % mutual definition on China to 125 %. Including all customs duties, taxes on goods imported from China are now 145 %. It also temporarily stopped the mutual tariff for all other countries for 90 days, leading to a global rate of 10 %.
Many consumers are planning all over the country to reduce their spending to prepare for higher prices due to the Trump tariff.
According to the last market pulse reconnaissance From Inmome, 60 % of consumers said they are planning to shop less rather than prepare to raise potential prices from definitions, which may reduce sales of many retailers.
Nathan Stirk & Sol; Getty Images
Amazon causes a significant change amid tariff fears
Amid this increasing threat, Amazon decided to cancel the orders of products made in China and other Asian countries, according to Modern report From Bloomberg.
Amazon’s decision occurred shortly after Trump’s introductory announcement on April 2. The retail seller abolished orders for elements such as motorcycles, beach chairs, air conditioners, etc.
One of the sellers told that Amazon with Bloomberg that the retail seller sent them an email last week stating that it was canceling an order of $ 500,000 in bulk “error.”
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The seller was selling beach chairs made in China, forcing them to cancel to push the factory and search for other buyers since the chairs were already manufactured.
Bloomberg’s e -commerce advisor also told Amazon that they have canceled orders for products made in China and other Asian countries from many customers without notice.
According to reconnaissance It was conducted by Jungle Scout, approximately 70 % of the products sold on the Amazon by wholesalers and retail dealers obtained from China. Therefore, it is not surprising that Amazon make these sharp changes to avoid the high costs associated with Trump’s definitions on China.
Amazon CEO deals with an increasing threat to tariffs
during A recent interview With CNBC, Amazon Andy Jassy CEO of recent reports stating that the company was cutting purchases from China by highlighting that the main goal is to maintain low prices for consumers.
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“Whenever you have any threat of any kind of stopping, as a team, you have to think about things that you can do to help customers,” Jassi said. “So we are doing our best to try to maintain prices the way it was for customers – as much as possible.
He also said that the company had re -negotiated with suppliers in some cases to maintain low prices for customers. However, Jassy warned that the third -party sellers on Amazon may transfer additional costs on consumers due to the definitions.
Jaci said: “I think the sellers will go through this cost, and I think they will try, and I understand the reason.” “I mean, based on the country where you are, you do not have an additional margin by 50 % you can play with it. So I think they will try to pass the cost. And you know, as I said, it’s very early at the present time, but we have not seen any change in consumer behavior in a meaningful way so far.”
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