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Today: April 18, 2025
Today: April 18, 2025

Amazon considers $15 billion warehouse expansion plan, Bloomberg News reports

FILE PHOTO: The logo of U.S. online retailer Amazon is displayed at a logistics centre in Trapagaran
April 09, 2025
Reuters - Reuters

(Reuters) -Amazon.com is considering a $15 billion warehouse expansion plan for about 80 new logistics facilities in U.S. cities and rural areas, Bloomberg News reported on Wednesday, citing people familiar with the matter.

The company is asking potential capital partners to submit proposals, according to the report, which said the facilities are expected to be mostly delivery hubs, but some would also include large fulfillment centers packed with robots.

Amazon said the projects were currently under discussion and have not been finalized.

"Meetings like this with our capital partners are routine and part of the normal due diligence process, as we consider potential, future projects," Amazon spokesperson Steve Kelly said.

Separately, the e-commerce company has canceled orders for multiple products made in China and other Asian countries, Bloomberg News reported, citing a document it reviewed and people familiar with the matter.

The orders for beach chairs, scooters and other merchandise from multiple vendors were halted after the sweeping April 2 U.S. tariff announcements, the report said, adding that timing of the cancellations, which had no warning, led the vendors to suspect it was a response to tariffs.

Amazon did not immediately respond to a Reuters request for comment on cancellation of orders for products made in China.

China and the European Union announced new trade barriers on U.S. goods on Wednesday in response to steep duties imposed by U.S. President Donald Trump, escalating a global trade war that has hammered markets and raised the likelihood of recession.

China announced a tariff hike on U.S. imports to 84% from 34%, shortly after Trump's punitive 104% tariffs on Chinese imports kicked in on Wednesday, as a standoff between the world's two largest economies showed no signs of resolution.

Amazon spent heavily on its retail infrastructure during the pandemic, even incurring $2 billion in quarterly expenses for excess warehouse and transportation capacity. The company has since reined in those investments, focusing instead on its cloud and AI business.

It has more than 600 U.S. fulfillment centers, delivery stations and same-day facilities.

(Reporting by Deborah Sophia in Bengaluru; Editing by Shounak Dasgupta)

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