On Tuesday, Amazon.com, Inc. (NASDAQ:AMZN) reportedly renegotiated prices with some suppliers as reduced U.S. tariffs on Chinese imports eased cost pressures across its e-commerce supply chain.
Amazon Reopens Supplier Pricing Talks After Tariff Rollback
An Amazon spokesperson told Reuters that it is engaging with sellers but highlighted its broader goal of keeping prices competitive for consumers.
Amazon did not immediately respond to Benzinga’s request for comments.
Earlier in the day, the Financial Times reported that Amazon is looking to reduce the prices it pays suppliers for products sold on its e-commerce platform.
The company is reportedly seeking to roll back concessions made to offset the impact of U.S. tariffs imposed by President Donald Trump.
Tariff Cuts Ease Import Costs From China
The pricing discussions follow an agreement reached in late October between Trump and Chinese President Xi Jinping to lower tariffs on Chinese goods entering the U.S.
The deal included commitments from Beijing to crack down on the illicit fentanyl trade, resume purchases of U.S. soybeans and ensure continued exports of rare earth materials.
As part of the agreement, average U.S. tariffs on Chinese imports were reduced to about 47%, down from roughly 57%.
Reversal Of Amazon’s Pricing Concessions
During the height of the trade dispute, Amazon and other major retailers absorbed higher costs or allowed suppliers to raise prices in an effort to shield shoppers from sharp price increases.
With tariffs now lower, Amazon appears to be reassessing those arrangements as it seeks to protect margins while continuing to offer competitive pricing.
Supreme Court Ruling Adds Uncertainty
The U.S. Supreme Court is expected to issue rulings on Jan. 14 in several major cases, including challenges to the legality of Trump’s sweeping global tariffs imposed under the International Emergency Economic Powers Act, Reuters noted.
If the court finds those tariffs unlawful, the U.S. government could be required to refund nearly $150 billion in duties already paid by importers, the report added.
Price Action: On Tuesday, Amazon shares slipped 1.57% during the regular session and gained 0.025%, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, Amazon maintains a strong outlook across short, medium and long-term horizons. Click here to see how Apple compares with its industry peers.
Photo: bluestork / Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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