2 Reasons to Avoid Amazon Stock as Tariffs Escalate

While President Donald Trump paused most of the tariffs that went into effect last week, tariffs on Chinese goods not only remain in place but are escalating, as I write this. Most companies are exposed to tariffs on Chinese goods in one way or another, either because they source products and supplies from China, or because they're susceptible to weakening consumer and business spending as economic uncertainty ramps up.Amazon (NASDAQ: AMZN) is facing multiple headwinds from the tariffs on Chinese products, and the retail and cloud giant may be more exposed than many of its peers. Here are two reasons why staying away from Amazon stock might be a good idea.Around 62% of all items sold through Amazon in the fourth quarter of 2024 came from third-party sellers. Not only does Amazon's third-party marketplace greatly expand the variety of items available to shoppers, but it also generates copious fees. Amazon's third-party seller services produced revenue of $47.5 billion in the fourth quarter, more than AWS and Amazon Prime combined.Continue reading

Apr 12, 2025 - 11:05

2 Reasons to Avoid Amazon Stock as Tariffs Escalate

While President Donald Trump paused most of the tariffs that went into effect last week, tariffs on Chinese goods not only remain in place but are escalating, as I write this. Most companies are exposed to tariffs on Chinese goods in one way or another, either because they source products and supplies from China, or because they're susceptible to weakening consumer and business spending as economic uncertainty ramps up.

Amazon (NASDAQ: AMZN) is facing multiple headwinds from the tariffs on Chinese products, and the retail and cloud giant may be more exposed than many of its peers. Here are two reasons why staying away from Amazon stock might be a good idea.

Around 62% of all items sold through Amazon in the fourth quarter of 2024 came from third-party sellers. Not only does Amazon's third-party marketplace greatly expand the variety of items available to shoppers, but it also generates copious fees. Amazon's third-party seller services produced revenue of $47.5 billion in the fourth quarter, more than AWS and Amazon Prime combined.