Reuters exclusively reported that Amazon’s Prime Day is losing its luster among a critical group sellers.

Some third-party merchants who previously sold China-made goods during Amazon’s premier July shopping event are sitting it out this year or reducing the amount of discounted merchandise they offer. The planned pullback, which hadn’t been previously reported, is a way for sellers to protect profit margins amid the U.S.-China trade war triggered by steep tariffs placed by U.S. President Donald Trump on Chinese goods, sources told Reuters.

Why it matters

A pullback by third-party merchants – which are critical to Amazon’s business model– could mean fewer fees and less ad revenue for Amazon, as well as a more limited selection of discounted items for Prime Day shoppers. Prime Day has traditionally been one of Amazon’s biggest shopping events of the year, behind Black Friday and Cyber Monday, respectively.