Amazon Purportedly Pressuring Suppliers for Discounts To Counter Tariffs

While Temu and SHEIN have responded to President Donald Trump’s tariffs by raising prices and adding fees, Amazon is reportedly pressuring sellers instead. Per a report from the Financial Times, the world’s largest online retailer is asking merchants to decrease prices in various categories, including electronics and housewares.

Three vendor consultants, who negotiate on behalf of sellers and suppliers, have reportedly revealed inside information about Amazon’s tactics. According to them, the retailer is putting the squeeze on suppliers whose products come from China, which are currently subject to 145% tariff fees upon entering the U.S.

“Amazon is the 800-pound gorilla in the room,” Scott Miller, a consultant and former vendor manager for the retailer, told the Financial Times. “Brands have grown dependent on the platform and have little choice.”

The e-commerce giant is purportedly doing everything it can to mitigate the negative impact of tariffs and potential delays in shipment. If the insiders are correct, then the company is just following a similar strategy to Costco and Walmart, which have also been asking suppliers to lower costs.

Amazon may have cautiously admitted to pressuring suppliers. In a CNBC interview earlier this month, CEO Andy Jassy noted that price hikes may be coming, but the company has been working with suppliers to keep costs under control.

“There are some cases where we have deals we negotiated that weren’t done where we’ll renegotiate terms to make it easier for customers to have lower prices,” Jassy said.

Another Amazon Response to Tariffs?

Reports surfaced recently that Amazon had considered showing shoppers the impact of Trump’s tariffs on prices. Punchbowl News claimed the retailer would list a tariff surcharge related to products sold on its discount shopping platform, Haul.

Punchbowl’s report prompted a response from White House Press Secretary Karoline Leavitt. The retailer’s purported decision was “not a surprise,” Leavitt told reporters.

“This is certainly a hostile and political act by Amazon,” stated Leavitt, per CNBC. “This is another reason why Americans should buy American.”

After the White House blasted Amazon, the company came out and said it will not be disclosing tariff costs on its main retail site. However, it appears that it is still a possibility on Haul.

“The team that runs our ultra low cost Amazon Haul store has considered listing import charges on certain products,” a company spokesperson reportedly said, per Reuters.