Amazon Caps Warehouse Inventory Amid Tariff Turmoil

For many merchants selling on Amazon, a 90-day pause in steep U.S. tariffs on China should be a chance to stockpile inventory. But Amazon has already grown cautious about letting goods pile up in its warehouses, as it tries to keep its massive logistics and commerce business running efficiently amid trade turmoil.

In recent weeks, Amazon told some merchants it was cutting the amount of space they can use in its U.S. fulfillment centers, one of the final stops for goods before they get shipped to customers. The new limits resemble the harsh inventory caps Amazon introduced in 2020 and 2021, when it prioritized stocking the most in-demand household goods during the pandemic.