Amazon Shifts Sourcing to Avoid Tariffs
Amazon moved some Canadian sourcing from the US to China to avoid tariffs, according to internal documents reviewed by Business Insider.
Package Volume Growth in Canada
Amazon expects package volume in Canada to rise by more than 40% between 2026 and 2029, outpacing its US growth every year.
Tariffs and Retaliation
Despite setting expansion plans after Trump's tariff announcement, Amazon assessed tariffs' impact as smaller in Canada due to the US-Mexico-Canada Agreement (USMCA). However, Canada has since implemented retaliatory tariffs on US imports, affecting Amazon's Remote Fulfillment program.
"Amazon Canada faces a critical competitive challenge..." — Internal Document
Amazon claims prices in its Canadian store "have not increased outside of normal fluctuations." They are monitoring the new tariffs for potential impacts.
Investment and Employment
Since 2010, Amazon has invested over C$65bn (approximately $47bn) in Canada and employs more than 46,000 people there.
Competitive Landscape
Amazon is expanding its delivery network to compete with major retailers like Walmart, Loblaws, and Best Buy, who offer faster delivery services.