The government announced late Friday (April 11) consumer electronic imports from China would be excluded from the steep tariffs the U.S. has imposed on that country. 

However electronics goods such as smartphones would eventually fall under a separate round of tariffs on semiconductors, U.S. Commerce Secretary Howard Lutnick said in an interview with ABC’s “This Week” on Sunday (April 13).

“What he’s doing is he’s saying they’re exempt from the reciprocal tariffs,” Lutnick said of Trump. “But they’re included in the semiconductor tariffs, which are coming in probably a month or two.”

That could mean that tariffs on iPhones could return within weeks, he added.

“We need our medicines and we need semiconductors and our electronics to be built in America,” Lutnick said. “Remember, all — virtually all — semiconductors are made now in Taiwan and they’re finished in China. It’s important that we reshore them.”

A report on Lutnick’s comments by the Financial Times (FT) argued these remarks will generate even more business uncertainty in connection with the tariff rollout. The government has paused and reversed course on the matter more than once, causing days of stock market turmoil and leading to a wave of sell-offs in the $29 trillion U.S. Treasurys market.

The report added that any relaxation of tariffs on Chinese imports would be a victory for companies like Microsoft and Apple, the latter of which makes most of its iPhones in China.

Even before the government formally enacted the tariffs, the idea of the new levies was fostering uncertainty, as PYMNTS Intelligence found when it surveyed chief financial officers at U.S. middle-market firms in mid-February. That survey found that 20% of respondents said they would raise prices on their goods and services in response to the tariffs.

“But crucially, only a sliver said they would do so immediately as their first response to the tariffs,” the PYMNTS Intelligence report “Tariffs and Business Uncertainty: The Current State of Play, March 2025” said. “In any case, most companies hadn’t even started to plan for a global trade war.”

The report also found that 32% of these businesses said they have or will miss opportunities due to that uncertainty, 33% faced delays in getting products to market, and 31% saw client turnover because of their own uncertain business outlooks.

“Let that sink in,” PYMNTS CEO Karen Webster wrote in response to those findings. “That’s roughly a third of U.S. businesses making between $100 million and $1 billion in annual revenue — and the integral bridge between the enterprise and small business supply chains — who face some sort of economic uncertainty.”

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The number of travelers from western Europe who spent at least one night in the U.S. dropped by 17% year over year in March, the Financial Times (FT) reported Friday (April 11), citing data from the International Trade Administration (ITA).

From some countries — Ireland, Germany and Norway among them — travel declined by more than 20%, the ITA data showed.

This trend, the FT noted, threatens America’s tourism industry, which makes up 2.5% of the country’s gross domestic product. Some airline and hotel companies have warned of cooling demand for transatlantic travel and a “bad buzz” about visiting the U.S.

The number of overseas visitors to the U.S. fell by 12% year over year in March, the sharpest decline since March 2021, the middle of the COVID pandemic.

“In just two months [Trump] has destroyed the reputation of the U.S., shown one way by diminished travel from the EU to the U.S.,” said Paul English, co-founder of travel website Kayak. “This is not only one more terrible blow to the U.S. economy, it also represents reputation damage that could take generations to repair.”

The report said some of the reluctance is being fueled by U.S. immigration policy amid a rash of incidents in which overseas travelers were detained at the border.

Reports of those incidents led Gloria Sync, an artist and author in Nottingham, England, to call off a visit to San Francisco planned for next month.

“The borders seem unsafe,” Sync, who is transgender and said she was concerned about the “unwanted attention” her identity could bring at the border, told the FT. “I don’t know if I’ll ever go back, to be honest.”

The decline in EU to U.S. tourism comes as Americans are spending less on travel, with airline fares down 5.3% according to the latest Consumer Price Index figures.

Meanwhile, Delta Airlines warned last week of widespread uncertainty as it released its quarterly earnings.

“Consistent with our update last month, February and March reflected a much more challenging macro environment than anyone initially planned for,” Delta CEO Ed Bastian said during an earnings call. “Coming into 2025, we were positioned for another year of strong growth. However, given broad economic uncertainty around global trade, growth has largely stalled.”

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As Reuters reported Saturday, businesses ranging from toy stores to lip balm makers to concert halls are all feeling the effect of the levies, whether it means increased service costs or a jump in the price of goods.

“We’re constantly dealing with the uncertainty of the future and of our future supply chains,” said Steve Shriver, the founder and CEO of Eco Lips, a Cedar Rapids, Iowa, health and beauty company that sources ingredients from more than 50 countries, selling its products in 40,000 stores around the country.

On the day Trump announced the tariff pause, Shriver wrote to 300 clients, letting them know Eco Lips was raising prices.

“I don’t trust it. It’s a 90-day pause. It could change again in 10 days,” Shriver said. “There are still 10% tariffs across the board, and that’s a substantial addition to our prices.”

He projected that his yearly cost of goods could climb by $5 million, in addition to the $10 million Eco Lops usually spends on things like ingredients that cannot be grown in the U.S., such as vanilla, coconut oil and cacao.

Other businesspeople interviewed by Reuters said they were worried about ongoing economic turbulence, saying they have canceled purchase orders, or delayed hiring and expansion plans.

Aisha Ahmad-Post, the executive director for the Newman Center for the Performing Arts at the University of Denver, told Reuters the tariffs have crimped her organization’s plans to replace the 971 chairs in one of its concert halls.

“The chairs are already in production, it’s not like we can just pivot,” Ahmad-Post said. “Now we’re stuck trying to figure out how we’ll pay for this.”

Research by PYMNTS Intelligence has shown that close to 20% of small and medium-sized businesses (SMBs) are pessimistic about their odds of survival over the next five years.

That research — from the report “Brewing Storm: Why 1 in 5 Smaller Businesses Without Financing Fear They May Not Survive Tariffs” — found that 7% of all SMBs — and 13% of SMBs without access to financing — said they were unlikely to make it through the next two years.

These businesses were surveyed between Feb. 5 and Feb. 12, when the White House had introduced tariffs against Canada, China and Mexico but before many countries announced retaliatory levies and a global trade war kicked off.

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As measured by the preliminary April reading of consumer sentiment released Friday (April 11) by the University of Michigan, worries over household finances, inflation and the impact of tariffs all weighed on our collective minds.  The 50.8 number tied to overall Consumer Sentiment comes close to the nadirs seen in the past decades, as seen in the accompanying chart.

“This decline was, like the last month’s, pervasive and unanimous across age, income, education, geographic region and political affiliation,” wrote Joanne Hsu, the survey’s director, in remarks that accompanied the release.  Sentiment is more than 30% lower than had been seen at the end of the year, but it’s important to note that the data were collected from the end of March to April 8 — before the stunning, partial delay of tariffs levied by the Trump administration (with the exception of China).

The 50+ levels are flashing red in terms of signaling a recession. The Friday release noted that the share of consumers expecting unemployment to rise in the year ahead increased for the fifth consecutive month, and with the Great Recession as a reference point, that is the highest level of such expectations seen since 2009.

The steady march downward in sentiment is chronicled in the fact that the overall sentiment barometer represents an 11% decline from March, following month-on-month decreases in March (-11.9%), February (-9.8%) and January (-3.1%). If this trend continues through the end of the month, it would amount to a 31.4% loss since the start of the year, the largest four-month decline recorded since the 2000s. The drop in sentiment was widespread and consistent across age groups, income levels, education, regions and political affiliations.

Beyond the overall sentiment,  the subindex measuring future expectations continued its downward trajectory, falling an additional 10% this month after an 18% drop in March.

This growing pessimism about the labor market contrasts sharply with the robust conditions of recent years, when strong employment and rising incomes bolstered consumer spending.

Huge Jump in Expected Inflation

Inflation expectations also surged. Short-term inflation expectations for the year ahead jumped from 5.0% in March to 6.7% in April, the highest level since 1981. This marks four consecutive months of unusually large increases of 0.5 percentage points or more, as defined by the report. Long-term inflation expectations also edged higher, rising from 4.1% in March to 4.4% in April.

The uncertainty noted above, and the worries over inflation have been enough to incentivize consumers to get out in front of their worries and buy what they could, when they could — on the assumption that supply chains and prices were about as good as they would get on the near term.

Indeed, the first swell of earnings reports have borne out that activity. As PYMNTS reported in its coverage Friday of JPMorgan’s earnings report, CFO Jeremy Barnum told analysts, “I think on the consumer side, the thing to check is the spending data, and to be honest, the main thing that we see there is what would appear to be a certain amount of front-loading of spending ahead of people expecting price increases from tariffs.” Despite that sentiment, spending growth slowed a bit, to 7% on credit and debit cards in the first quarter, which ended in March.

The assessment of future conditions may be taking a hit as consumers find it tough to be proactive about their financial states of affairs — they’re reacting rather than formulating longer term strategies. PYMNTS Intelligence reported that of the more than 2,800 consumers surveyed, 40% of consumers identified as planners in January 2025 — a roughly 20% plunge since February 2024, when roughly 1 in 2 were planners.

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Small and medium-sized businesses (SMBs), which account for one-third of imports to the U.S., don’t have the resources of larger companies to deal with higher prices and other disruptions, The Wall Street Journal (WSJ) reported Friday (April 11).

Nearly two-thirds of small businesses surveyed in March said that tariffs and other trade issues would hurt their company, the report said, citing a survey conducted for the WSJ by Vistage Worldwide.

Among small business owners interviewed for the Friday WSJ report, one said he would not open his seasonal fireworks store until the trade war is sorted out, another said he is not likely to have the cash to cover the tariffs on orders of apparel that are due to arrive in mid-August, and a third said he will have to increase the price of his company’s backpacks from $155 to $210 to stay profitable.

The challenges small businesses face when managing the impacts of tariffs include slowing sales, higher prices for raw materials, limited leverage to negotiate with suppliers, a lack of adequate working capital and uncertainty about how to set prices when tariffs are constantly changing, according to the report.

They must also deal with difficulties finding U.S. suppliers for goods they currently import, and a disadvantage compared to larger companies when trying to buy the U.S. goods that are available, per the report.

Nearly 1 in 5 SMBs are pessimistic about their odds of survival over the next five years, according to the PYMNTS Intelligence report, “Brewing Storm: Why 1 in 5 Smaller Businesses Without Financing Fear They May Not Survive Tariffs.”

The report found that 6.9% of all SMBs — and 13% of SMBs without access to financing — said they were unlikely to survive the next two years.

The SMBs were surveyed between Feb. 5 and Feb. 12, when the White House had announced tariffs against Canada, China and Mexico but before many countries announced retaliatory levies and a global trade war unfolded.

The tariffs arrived at a time when small businesses were already facing stalled funding, job cuts at federal agencies and a crackdown on immigration, The New York Times reported Sunday (April 6).

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A drop in demand for that commodity — which amounted to nearly $25 billion in sales by U.S. farmers to customers around the world — would impact not only farmers but also suppliers of tractors, fertilizer and seeds, Bloomberg reported Friday (April 11).

Currently, China has purchased no soybeans from the U.S. for the next year, soybean futures are down 10% from a year ago and soybean prices are the lowest they’ve been since December, according to the report.

During another trade war with China during President Donald Trump’s first term, demand for U.S. soybeans slowed, domestic inventories more than tripled and the administration provided a $28 billion bailout to the farm economy, the report said.

In addition, Brazil established stronger ties with China and overtook the U.S. as the world’s biggest exporter of soybeans, per the report.

The uncertainty around tariffs has contributed to a decline in farmer sentiment about the future, according to the report. In addition, farmers’ outlook for agricultural exports over the next five years has sunk to the lowest point since that question was added to a survey in 2019, the report said, citing Purdue University and CME Group’s Ag Economy Barometer.

Trump increased his previously announced tariffs on China Wednesday (April 9) in an executive order issued after that country retaliated against the U.S. by boosting its tariffs on U.S. goods.

In the same order, Trump announced a pause to reciprocal tariffs on 75 countries after those countries contacted representatives of the U.S. to negotiate a solution to trade issues.

Announcing his decision in a Wednesday post on Truth Social, Trump said: “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”

During a Tuesday (April 8) Senate Finance Committee hearing, Sen. Todd Young (R-Ind.) expressed concerns that the U.S. tariffs will result in other countries responding with countermeasures targeting specific industries.

“One of the things I’m hearing from my constituents back home is that trade retaliation does not fall on everyone equally,” Young said. “It could have a different effect on a New York tech firm than it might have on a Hoosier soybean farmer.”

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The uncertainty around what the final tariffs will be is causing a greater challenge for these businesses than the 10% baseline tariff that has already been applied, John Denton, secretary-general of the International Chamber of Commerce said in a WSJ report posted Friday (April 11).

“That means that a lot of critical decisions about investment will be put off until the second half,” Denton said, per the report.

When PYMNTS Intelligence surveyed chief financial officers at U.S. middle-market firms in mid-February, when talk of U.S. tariffs was everywhere but the government had not formally enacted any levies, 1in 5 respondents said they would raise prices on their goods and services in response to the tariffs.

“But crucially, only a sliver said they would do so immediately as their first response to the tariffs,” the PYMNTS Intelligence report “Tariffs and Business Uncertainty: The Current State of Play, March 2025” said. “In any case, most companies hadn’t even started to plan for a global trade war.”

PYMNTS CEO Karen Webster highlighted the report’s findings that 32% of these businesses said they have or will miss opportunities due to that uncertainty, 33% faced delays in getting products to market, and 31% experienced client turnover because of their own uncertain business outlooks.

“Let that sink in,” Webster wrote. “That’s roughly a third of U.S. businesses making between $100 million and $1 billion in annual revenue — and the integral bridge between the enterprise and small business supply chains — who face some sort of economic uncertainty.”

Retail giants Amazon and Walmart are recalibrating everything from procurement strategies to pricing models to remain resilient amid the newly implemented tariffs, PYMNTS reported Friday.

Amazon CEO Andy Jassy told CNBC Thursday (April 10) that the retailer is doing everything it can to keep prices as low as possible for its customers amid the new tariffs.

“We’ve done some strategic forward inventory buys to get as many items as makes sense for customers at lower prices,” Jassy said. “There are some cases where we have deals that were negotiated that weren’t done, where we’ll renegotiate terms to make it easier for customers to have lower prices.”

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The number of jobless claims rose to 223,000, up from the previous week’s 219,000, according to the release.

The four-week moving average was unchanged from the previous week, remaining at 223,000, per the release.

The increase in initial claims was marginal, with layoffs remaining historically low, and the total number of jobless claims matched economists’ forecasts for the week, Reuters reported Thursday.

The slight increase indicated that the labor market remains “broadly healthy,” AP reported Thursday, adding that the analysts it surveyed had predicted 225,000 new applications.

The Department of Labor also reported Thursday that the number for insured unemployment dropped by 43,000 during the week ended March 29. It dropped to 1,850,000, down from the previous week’s revised level of 1,893,000, according to the press release.

The insured unemployment rate remained at 1.2%, unchanged from the previous week.

The state with the greatest increase in initial claims during the week ended March 29 was Kentucky, which added 2,810. In comments supplied to the Department of Labor, the state attributed the rise to layoffs in the manufacturing industry.

Illinois, which had the second largest increase, adding 1,286 initial claims, said it saw layoffs in four sectors: transportation and warehousing, construction, wholesale trade and retail trade.

No state had a decrease of more than 1,000 initial claims during the week, per the release.

The Bureau of Labor Statistics reported April 1 that the number of job openings in the U.S. declined to 7.57 million in February, down from 7.76 million in January and 8.45 million in February 2024.

Reporting these figures in its monthly Job Openings and Labor Turnover Summary (JOLTS), the Bureau characterized the month-over-month decline as “little changed” but noted that the year-over-year drop amounted to 877,000 fewer job openings.

Bloomberg reported at the time that the JOLTS figures for job openings remained largely stabilized at a level around where they were before the pandemic and that the decline in the number of available positionssignaled a labor market that is “only gradually cooling.”

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The headline inflation rate notched its lowest level in four years. However, the data came ahead of the April 2 “Liberation Day,” and massive tariffs imposed on dozens of U.S. trading partners. As of Thursday morning (April 10), there’s a 125% rate charged to China, which in turn hiked tariffs on U.S. goods to 84%. In other words, there are going to be costs passed along to consumers.

Uncertain Impact Along Supply Chains

Those costs and price hikes are uncertain and unquantified. In one example of just how fluid things are, Bloomberg reported Wednesday (April 9) that Walmart is tasking parts of its China-based supply chain to leave stickers off of some items, which leaves room to hike prices. Other firms are suspending orders for raw materials and inputs to their products. Should the pauses remain in place, the impact on retailers and other merchants may be one where goods are in short supply, which also drives up prices.

Consumers have already been retrenching. As Karen Webster noted in a column this week, nearly 78% of consumers across “all major retail categories of spend — clothes, food, health and beauty, personal services, household and tech/digital services — are rethinking what they buy and how much they are willing to spend when they do. Tech purchases, eating out and buying coffee at the local coffee shop are consistently on the chopping block, even for those who do not feel financial pressures.”

Consumer prices decreased by 0.1% on a seasonally adjusted basis in March, following a 0.2% increase in February, per CPI data. Over the past year, the all-items index rose 2.4% unadjusted, a slowdown from the 2.8% increase recorded in February.

For the first quarter of 2025, the CPI rose 1.3% unadjusted, marking the lowest first-quarter increase since 2019.

The prime mover here has been energy prices, which declined by 2.4% in March, led by a 6.3% drop in gasoline prices, which offset increases in natural gas (3.6%) and electricity (0.9%).

However, the staples of daily life are still on the rise. Food prices rose 0.4% in March, with the “food at home” index increasing 0.5%. This rise was primarily driven by a 5.9% increase in egg prices and a 1.3% rise for meats, poultry, fish and eggs. Other changes included a 1.2% rise in beef prices and a 0.6% increase in nonalcoholic beverages.

Coffee, which is a key import, continued to rise and may portend a shift for java hounds. Instant coffee prices rose 0.9% in March, contributing to a 2.6% increase for the quarter and a 6.7% rise compared to March 2024.

Over the past year, the “food at home” index rose 2.4%, with egg prices surging by 60.4%.

Meanwhile, the “food away from home” index increased 3.8%, with full-service meals rising 4.1% and limited-service meals climbing 3.4%.

Personal care items rose 1% in March.

Airline fares declined 5.3%, which may or may not spur consumers to make summer travel plans. Delta Air Lines’ commentary from its most recent earnings call suggests some turbulence in the travel industry.

Over the past year, the core CPI increased 2.8%, with shelter rising 4%, the smallest annual increase since November 2021. On an unadjusted basis, shelter prices rose 0.2% in March.

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He waited until the day after tomorrow. On Wednesday (April 9) Trump announced a temporary suspension of reciprocal tariffs for most countries, reducing rates to a universal 10%. However, tariffs on Chinese imports were escalated to a staggering 125%, citing China’s “disrespect” toward global markets. This sharp increase followed China’s retaliatory tariffs earlier in the week, intensifying trade tensions between the two countries.

The pause provided temporary relief to many industries and market, as seen in the Dow Jones surge by nearly 2,200 points. However, companies and economists remain cautious about its long-term implications. The freeze does not eliminate tariffs entirely, leaving uncertainty about future trade policies but also pulling the covers on what companies may do if the temporary freeze is lifted for an appreciable amount of time.

Corporate Reactions: Preparing for Tariffs

Had the tariffs remained in place, companies across various sectors were poised to pass increased costs onto consumers. Grocery chains like Morton Williams anticipated price hikes of up to 20% on imported items such as olive oil and canned tuna due to tariff impacts. Retailers like Target had already adjusted their inventory strategies earlier in the year to mitigate immediate price shocks but warned of steep increases for perishable goods like fresh produce within weeks.

Similarly, manufacturers reliant on imported components faced significant challenges. PepsiCo noted declining snack sales due to inflationary pressures even before the tariff announcements. If sustained, higher tariffs could have exacerbated these trends, forcing companies to shrink product sizes (shrinkflation) or reduce offerings altogether.

For smaller businesses with limited capacity to absorb costs, the effects would have been even more pronounced. Independent grocery stores and smaller manufacturers often adjust prices faster than larger corporations due to lower inventory levels. These dynamics highlight how prolonged tariffs, if they return, could disproportionately impact smaller players in the market.

A PYMNTS report released earlier this week showed “about half of SMBs rely on immediate sales or existing cash for survival, with business credit cards — which are not a working capital solution — being the most common form of financing for those with access,” PYMNTS wrote recently. ”SMBs with access to some method of financing demonstrate greater confidence in navigating economic challenges.”

The challenges extend to middle-market companies where — per additional PYMNTS Intelligence research — 60% of CFOs expect the tariffs to bring about additional economic uncertainty and planning challenges. The research also found that almost 70% of finance chiefs foresee supply shortages and product delays, with a similar share executing new costs to restructure their supply chains.

Consumer Price Hikes: A Looming Burden

Experts agree that if tariffs had stayed in place, consumers would have faced significant price increases across various sectors:

Groceries: Yale University’s Budget Lab estimated food prices would rise by 2.8% overall, with fresh produce increasing by 4%. Lower-income households would bear the brunt of these hikes as they allocate a larger share of their income to essentials.

Clothing: Apparel prices were expected to climb within three to six months due to higher costs for imported textiles and manufacturing inputs. Back-to-school shopping could have become notably more expensive.

Electronics: Items like smartphones and laptops, which are heavily reliant on China-manufactured components, would likely see steep price hikes under the 125% tariff rate, which is still in place. Although it has become something of an internet meme, the exponential increases in iPhone prices if they were manufactured in the U.S. is an example.

These increases would not only strain household budgets but also contribute to broader inflationary pressures. Economists warned that sustained tariffs could reduce GDP growth by 0.6% annually and cost the economy $80–110 billion per year. Wedbush Securities tech analyst Dan Ives said Tuesday in an interview with CBS News that Chinese tariffs could create a “category 5 price storm” for personal electronics and other gadgets. Taxing China and other nations at such rates is the equivalent of “flipping a boat upside down in the ocean with no life rafts,” he added.

Future Tariff Policy

The temporary freeze has reignited debates on how tariffs should be handled moving forward. Gina Bolvin of Bolvin Wealth Management emphasized that clarity in trade policy is essential for market stability. She described the pause as a “pivotal moment” but cautioned against celebrating prematurely given ongoing uncertainties. Bolvin said the timing also “couldn’t be better” given major financial institutions including Bank of New York Mellon, BlackRock, JPMorgan Chase and Wells Fargo report earnings on Friday.

“This pause may provide companies with a clearer backdrop for their guidance, offering some relief to a market hungry for direction,” Bolvin added.

John Canavan from Oxford Economics noted that unilateral tariff policies create significant risks for global commerce. He advocated for negotiated agreements rather than abrupt policy shifts that destabilize markets. “There have been very mixed messages on whether there would be negotiations,” Canavan said. “Given what’s been going on with the markets, he realized the safest thing to do is negotiate and put things on pause.”

Other developments before the tariff reversal showed how companies were prepared to deal not only with increased costs but from the uncertainty of the tariff drama.

New tariffs on low-value packages from China could hinder the plans of Shein and Temu. As the Financial Times (FT) reported Tuesday (April 8), the White House has upped duties on those packages to 90% of their value, or a flat fee of $75 that would increase to $150. The duty goes into effect May 2, with the flat-fee hike happening after June 1. The shift follows Trump’s closing of a loophole that allowed Chinese imports under the “de minimis” threshold of $800 to arrive duty-free.

Walmart announced it was pulling its first-quarter operating income outlook due in part to tariff-related concerns.

“The range of outcomes for Q1 operating income growth has widened due to less favorable category mix, higher casualty claims expense and the desire to maintain flexibility to invest in price as tariffs are implemented,” the retail giant said in a news release Wednesday.

Walmart had forecast operating income of 0.5% to 2% for the first quarter when it released fourth-quarter earnings result in February. The company is scheduled to release its full earnings May 15. Walmart said it expects first-quarter sales growth to be in line with a 3% to 4% outlook, with annual sales and operating income growth guidance unchanged, per the release, timed to coincide with the company’s Investment Community Meeting.

Thousands of Canadian autoworkers were furloughed before the tariffs were rolled back. Now, Canada’s largest private-sector union is warning these temporary layoffs could be the beginning of larger troubles for the sector, Bloomberg reported Wednesday.

“The industry will not be able to live under these kinds of tariffs,” Unifor President Lana Payne said, per the report. “The longer this goes on, the bigger the fallout we’re going to see. My concern is that we see temporary layoffs turn into much longer layoffs.”

Around 6,000 Unifor members were laid off temporarily after Trump’s April 2 announcement of tariffs on most countries, the report said. The bulk of those notices went to workers at a Stellantis plant in Windsor, Ontario, which produces Chrysler and Dodge vehicles, and which shut down for two weeks as the carmaker examines the impact of the tariffs, according to the report.

Amazon reportedly canceled orders from multiple vendors in China and other Asian countries.

The company’s cancellations of the orders came without warning and didn’t mention tariffs, but their timing suggests they came in response to the tariffs, Bloomberg reported Wednesday, citing unnamed sources and a document it had seen.

It’s not known how widespread Amazon’s cancellations of orders are, according to the report. The report cited one vendor who said the company canceled a $500,000 order and an eCommerce consultant who said Amazon canceled orders from “several” clients. Amazon did not immediately reply to PYMNTS’ request for comments.

About 40% of the products sold on the company’s website are purchased by Amazon directly from vendors, while the remainder are listed on its site by third-party sellers, according to the report.

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