The tariff war is colliding with Amazon's plan for growth in Canada
Internal Amazon forecasts show a major Canada expansion even as tariffs reshape cross-border commerce and supply chains.
Amazon's expansion plans in Canada are being complicated by the ongoing tariff war, according to internal documents. Despite the additional 50% tariffs on certain Canadian imports, Amazon remains committed to investing in the country. The company expects package volume in Canada to grow faster than in the US over the next several years, and has plans to expand fulfillment capacity, same-day delivery, and logistics network.
Amazon has invested over C$65 billion in Canada since 2010 and employs more than 46,000 people. However, competitors like Walmart are pressuring Amazon, with Walmart launching Walmart+ in Canada in June, offering unlimited same-day delivery. Amazon is closely monitoring the changing trade environment but has not seen the new Canadian tariffs translate into higher prices on its Canadian marketplace yet.
The company projects that Canadian package volume will increase by more than 40% between 2026 and 2029, but faces challenges with faster-moving competitors.
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