E-commerce giant Amazon (AMZN) is negotiating with suppliers to reduce payments for the goods it sells on the platform to offset U.S. tariffs under President Donald Trump.
The tech company is attempting to transfer risk of additional trade volatility to its suppliers by asking them to agree to pay any levies associated with the goods they sell, the Financial Times reported, citing sources familiar with the matter.
“We work closely with vendors to understand all the cost pressures they’re facing — tariffs, supply chain, raw materials, labour — and factor those into negotiations,” Amazon said, according to the report.
Amazon is seeking discounts from low single digits to as high as 30%, according to several vendor consultants. The company has engaged in talks and given a January 1 deadline in some cases and wants suppliers to cover future duties, marketing, and promotions for smaller discounts.
Daria Nipot