Amazon is seeking discounts from suppliers due to ongoing tariff disputes.
Amazon seeks up to 30% discounts
Urgent negotiations with suppliers
Supreme Court to rule on tariffs
Previous price increases agreed
Amazon cites reduced tariff impacts
Other companies moving production
Amazon is looking for lower prices from its suppliers as it navigates tariff challenges.
Amazon’s Discount Requests
The company has asked suppliers for discounts as high as 30%, according to the Financial Times. Reports indicate that Amazon has sped up discussions with several suppliers, setting some to wrap up by January 1 ahead of a Supreme Court ruling on tariffs.
Though Amazon stated that its annual vendor negotiations are routine and without strict deadlines, it noted that discussions picked up after tariffs on Chinese imports were reduced in October.
Past Agreements and Current Strategy
Last year, Amazon had agreed to increase payments to some suppliers for products affected by tariffs in return for minimum margin guarantees. This setup meant that suppliers absorbed losses if prices dropped on Amazon’s platform.
Now, Amazon is trying to change these terms, arguing that the impact of tariffs has lessened due to recent trade agreements and tariff reductions by the government.
Industry Responses to Tariffs
Many companies are adapting their strategies in response to tariffs. For instance, Apple is relocating production from China to India to mitigate tariff exposure.
Asus has shifted over 90% of its PC production outside China, setting up in Thailand, Vietnam, and Indonesia. General Motors has also announced a significant investment to expand U.S. production.
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