Amazon Eyes Massive $15B Warehouse Expansion Across the US

Bloomberg News reported on Wednesday that Amazon.com was considering a $15 billion expansion plan to build 80 new warehouses in rural and urban areas of the United States. The report was based on people familiar with this matter.

According to the report, the company has asked potential capital partners to submit bids. The facilities will be mostly delivery hubs, but some properties will also include large fulfillment centers packed with robots.

Bloomberg reported that the e-commerce company had also canceled multiple orders for products made in China or other Asian countries. It cited a document they reviewed and sources familiar with the issue.

Bloomberg reported that the orders for beach chairs and scooters as well as air conditioners from several Amazon vendors had been halted following the Trump administration’s April 2, 2018 announcement of sweeping tariffs. The timing of these cancellations was not announced, leading the vendors to believe it was in response to tariffs.

Amazon has not responded to comments immediately.

China and the European Union announced on Wednesday new trade barriers against U.S. products in response to steep tariffs imposed by U.S. president Donald Trump. This has escalated a global trading war, which has hit markets and increased the risk of recession.

China raised tariffs on U.S. imported goods to 84% (from 34%), just a few hours after Trump’s 104% punitive tariffs against Chinese imports went into effect on Wednesday. The standoff between two of the largest economies in the world showed no sign of resolution.

Amazon invested heavily in its retail infrastructure, incurring even $2 billion per quarter for excess storage and transportation capacity. Since then, the company has reined these investments in and is now focusing on its cloud-based AI business.

Bloomberg reported that Amazon is willing to lease new logistic facilities in the U.S. over a period of 15 to 25 years. Some sites may be funded by Amazon directly. More than 600 U.S. facilities, including delivery stations and same-day facilities, are owned by the company.