Amazon pushes suppliers for cuts ahead of Supreme Court tariff ruling: FT

TECH giant Amazon said on Tuesday it held discussions with some vendors about adjusting costs to reflect the reduction in tariff rates for Chinese imports.

The Financial Times reported earlier in the day that the company was seeking to cut what it pays suppliers for goods sold on its e-commerce platform, as it moves to reverse concessions intended to soften the impact of US President Donald Trump’s tariffs.

“We’re continually working with our broad, varied range of valued selling partners in our store to support them in adapting to the evolving environment while maintaining broad selection and low prices for customers,” a company spokesperson told Reuters.

In late October last year, Trump agreed with President Xi Jinping to trim tariffs on imports from China in exchange for Beijing cracking down on the illicit fentanyl trade, resuming US soybean purchases and maintaining rare earths exports flowing.

The current average US tariffs on Chinese imports were lowered to about 47 per cent from 57 per cent.

Meanwhile, the US Supreme Court said last week that it would issue its next rulings on Jan 14 as several major cases remain pending, including the legality of Trump’s sweeping global tariffs.

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The administration faces the possibility of having to refund nearly US$150 billion paid in tariffs to importers if the court declares that the sweeping duties Trump has imposed under the International Emergency Economic Powers Act are illegal. REUTERS