Amazon Mulls $15 Billion Warehouse Expansion Plan – Report

Amazon is reportedly considering expanding its real-estate footprint in the United States, despite global turmoil over Trump’s tariffs.

Bloomberg, citing people familiar with the matter, reported that Amazon is considering a $15 billion (£11.7 billion) warehouse expansion plan for about 80 new logistics facilities in American cities and rural areas.

It comes after Amazon triggered deep anger in Canada earlier this year, when it closed all seven of its warehouses in the Canadian province of Quebec, with the loss of 1,700 full-time jobs.

Warehouse expansion

The warehouse closures happened to be in the only location in Canada with unionised Amazon employees, and a trade union has threatened a lawsuit over the matter.

Now according to the Bloomberg report, Amazon is considering a $15 billion warehouse expansion plan for about 80 new logistics facilities in US.

The report said Amazon is asking potential capital partners to submit proposals, and the new warehouses are slated to be mostly delivery hubs, but some of the properties would also include large fulfilment centres packed with robots.

Meanwhile Bloomberg, citing a document it reviewed and people familiar with the matter, also reported that Amazon has already cancelled orders for multiple products made in China and other Asian countries

The orders for beach chairs, scooters, air conditioners and other merchandise from multiple Amazon vendors were halted after Trump’s sweeping tariff announcements, Bloomberg reported.

There is concern that the biggest tech impact of Trump’s tariffs could be on Amazon’s e-commerce operation, as it sells many goods manufactured in China and other countries.

Amazon’s share price fell on news of the tariffs.

Tariff turmoil

Last week Trump revealed his tariffs varied as low as 10 percent for a few selected nations (including the UK, Australia, New Zealand and Singapore).

However Trump’s tariffs were much higher for 60 so called “worst offenders” which includes China, Vietnam, Cambodia, South Africa, and even allies such as the European Union, Japan and Taiwan.

Countries that faced the highest tariffs are China (54 percent, including previously announced tariffs); Cambodia (49 percent tariff); Vietnam (46 percent tariff); and Thailand (36 percent tariff).

There are no additional tariffs on Canada and Mexico, as both countries have already been subjected to a 25 percent tariff by Trump.

Meanwhile China has announced it will impose additional tariffs on US goods on Thursday. It will place an import tax of 84 percent on US goods – a 50 percent increase from its previous 34 percent tariff.

Meanwhile European Union countries voted to approve on Wednesday to impose retaliatory tariffs on €21bn (£18bn) of US goods, targeting farm produce and products from Republican states.

Those EU measures were a response to the US tariffs on steel and aluminium announced by Trump in February.

The EU is also expected to announce (as soon as next week) retaliatory measures to the 25 percent tariffs on imported cars to the US, as well as Trump’s sweeping “reciprocal tariffs”.