As economists warn about rising costs and economic downturns, the Amazon founder faces significant challenges.
How will Donald Trump’s tariffs impact Amazon?
According to new data, with Amazon so dependent on Chinese imports, new trade levies could set the company back millions of dollars.
According to estimates from US investment giant Morgan Stanley, roughly 25% of all the goods that Amazon sells directly on its platform are made in China, making the company particularly susceptible to the new tariffs, as quoted in a report by Mirror.
Compared to some of its competitors, such as Etsy, which is estimated to source less than 3% of its products from China, this represents a much higher percentage.
Could these tariffs trigger a recession?
President Donald Trump’s aggressive trade policies caused a massive stock market sell-off, which is estimated to have cost Mr. Bezos £22 billion since his inauguration. Other tech titans like Facebook owner Mark Zuckerberg and Tesla billionaire Elon Musk have also seen their fortunes decline. It follows news that Amazon made a last-minute attempt to acquire TikTok. The Amazon bid was made in an offer letter sent to Vice President JD Vance and Commerce Secretary Howard Lutnick, according to an official who spoke to the Associated Press on condition of anonymity.
Prior to Donald Trump signing an executive order postponing the sale or ban of the app by seventy-five days, the app was temporarily blocked in the United States in January due to possible national security concerns, as per a report by the Mirror.
Donald Trump’s new Liberation Day tariffs have been promoted by the White House as a way to punish other nations for decades of unfair trade practices and boost American manufacturing.
However, analysts have warned that the action could cause the economy to contract and hit consumers with sharp price increases.
Goldman Sachs recently raised its prediction of the US’s likelihood of a recession in the upcoming year from 20% to 35% amid the indications of a new trade war.
As per the investment giant, the White House has demonstrated a “greater willingness to tolerate near-term economic weakness in pursuit of their policies.”
Meanwhile, S&P Global stated that recent signs of possible weakness in the US economy and “U.S. tariff effects” were the main causes of the downgrades in 2025 economic growth projections for several major economies, as quoted in a report by the Mirror.
What other industries are affected?
Similar recent announcements of 25% auto import taxes, levies against China, Canada, and Mexico, and trade penalties on steel and aluminum preceded the tariffs.
Along with declaring import taxes on computer chips, lumber, copper, and pharmaceutical medications, Trump has also placed tariffs on nations that purchase oil from Venezuela.
FAQs
Why do these tariffs threaten Jeff Bezos?
Amazon imports roughly 25% of its products from China, so the new tariffs could significantly increase costs and reduce profits.
Could Donald Trump’s tariffs actually trigger a recession?
Economists warn that higher import taxes may result in higher prices, lower consumer spending, and an economic slowdown, increasing the likelihood of a recession.
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