Amazon seeks lower supplier costs following US-China tariff reduction

Amazon.com Inc. has initiated discussions with its vendors to adjust product costs in response to a recent reduction in United States tariff rates on Chinese imports, as per a Reuters report. The move, reported on Tuesday, follows a period where the e-commerce giant had implemented various concessions to help suppliers manage the financial burden of high trade duties. With the average U.S. tariff on Chinese goods now lowered from 57% to approximately 47%, Amazon is moving to recapture those costs to maintain its competitive pricing model.

The current reduction in trade friction stems from an agreement reached in late October between President Donald Trump and Chinese President Xi Jinping. Under the terms of the deal, the U.S. agreed to trim specific duties in exchange for Beijing’s commitment to resume purchases of American soybeans, maintain the flow of rare earth exports, and increase enforcement against illicit fentanyl trafficking. An Amazon spokesperson confirmed that the company is working with its selling partners to adapt to this "evolving environment" while prioritizing low prices for consumers.

The negotiations occur as the U.S. Supreme Court prepares to issue a significant ruling regarding the legality of the administration’s broader global tariff regime. The court is reviewing whether the use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping duties exceeds presidential authority. Should the court rule against the administration, the federal government could be required to refund nearly $150 billion in collected duties to importers, a decision that would further disrupt global supply chain financial planning.