President Trump's 145% China Tariffs Will Hurt Amazon. Here's Why I'm Still Buying the Stock.

Few companies are as harmed by the escalating trade war between the U.S. and China as Amazon (NASDAQ: AMZN). Its massive e-commerce platform sources many goods from China, which will see a dramatic price increase as the U.S. tariff rate on goods from there now sits at 145% -- at least, for the moment. However, that rate could easily change, as the two sides have not yet backed down.While some may think that Amazon will be a casualty in this trade war, other facts dispute this claim. As a result, I think using the weakness on the tariff fears to buy Amazon stock is the smart move, as there are far more factors to Amazon than just its e-commerce business.Let's address the elephant in the room: Of more than 1,000 third-party sellers surveyed by ECDB, 71% said that they sourced at least one product from China. This means that there are a ton of goods on Amazon's e-commerce platform that come from China, which could see a huge price hike shortly. In return, higher prices could cause consumers to spend less, hurting Amazon's total e-commerce sales.Continue reading

Apr 18, 2025 - 14:52

President Trump's 145% China Tariffs Will Hurt Amazon. Here's Why I'm Still Buying the Stock.

Few companies are as harmed by the escalating trade war between the U.S. and China as Amazon (NASDAQ: AMZN). Its massive e-commerce platform sources many goods from China, which will see a dramatic price increase as the U.S. tariff rate on goods from there now sits at 145% -- at least, for the moment. However, that rate could easily change, as the two sides have not yet backed down.

While some may think that Amazon will be a casualty in this trade war, other facts dispute this claim. As a result, I think using the weakness on the tariff fears to buy Amazon stock is the smart move, as there are far more factors to Amazon than just its e-commerce business.

Let's address the elephant in the room: Of more than 1,000 third-party sellers surveyed by ECDB, 71% said that they sourced at least one product from China. This means that there are a ton of goods on Amazon's e-commerce platform that come from China, which could see a huge price hike shortly. In return, higher prices could cause consumers to spend less, hurting Amazon's total e-commerce sales.