Amazon.com Inc. (AMZN) is heading back to the negotiating table with suppliers, and this time it's pushing for lower prices. The reason? Tariffs on Chinese goods just got cheaper, and Amazon wants to claw back some of the concessions it made when trade tensions were running hot.

What's Behind the Price Talks

According to a Financial Times report, Amazon is looking to reduce what it pays suppliers for products sold on its platform. An Amazon spokesperson confirmed to Reuters that the company is engaging with sellers, emphasizing its broader mission to keep prices competitive for shoppers. Translation: costs went down, so Amazon wants its piece of that savings.

This move follows an agreement struck in late October between President Donald Trump and Chinese President Xi Jinping to dial back tariffs on Chinese imports. As part of the deal, Beijing committed to cracking down on illicit fentanyl trafficking, resuming purchases of U.S. soybeans, and ensuring continued exports of rare earth materials. In return, average U.S. tariffs on Chinese goods dropped to about 47%, down from roughly 57%.

Unwinding the Trade War Playbook

During the peak of the U.S.-China trade dispute, Amazon and other major retailers found themselves in a bind. They either absorbed higher costs themselves or allowed suppliers to raise prices, all in an effort to shield consumers from sticker shock. It was an expensive strategy, but it kept shoppers from fleeing to competitors.

Now that tariff pressures have eased, Amazon is reassessing those arrangements. The company wants to protect its margins while still offering the kind of competitive pricing that keeps customers coming back. For suppliers who got used to those higher payments, this could be an uncomfortable conversation.

The Supreme Court Wild Card

There's another wrinkle that could upend the entire tariff landscape. The U.S. Supreme Court is expected to issue rulings on January 14 in several cases challenging the legality of Trump's sweeping global tariffs, which were imposed under the International Emergency Economic Powers Act.

If the court rules those tariffs unlawful, the U.S. government could be on the hook to refund nearly $150 billion in duties already paid by importers. That would be a massive development, not just for Amazon but for every company that's been navigating these trade policies.

Market Reaction

On Tuesday, Amazon shares slipped 1.57% during regular trading but edged up 0.025% in after-hours activity, according to market data. The stock maintains a strong outlook across short, medium, and long-term horizons based on analyst assessments.