The repercussions of the Chinese tariffs on U.S. goods may begin to manifest at Amazon and Wayfair: these companies may no longer be able to absorb the tariff costs, according to research by Bank of America given to Supply Chain Dive. With the 15% tariff that went into place Sept. 8, Amazon may raise its prices by as much as 2.6% and Wayfair by as much as 4.6%.
The research predicts Amazon and Wayfair will begin to source their materials from countries that are not China. This could reduce the total impact on consumers, the report said.
While many companies have been able to absorb the costs brought on by the U.S. and China trade war, this may no longer be the case for Amazon and Wayfair. About 20% of the costs of goods on Amazon products come from China and Wayfair's sourcing amounts to about 50-60%.
—Christie Citranglo, editorial associate