Amazon.com Inc (NASDAQ: AMZN) is in focus today after the Trump administration slammed the e-commerce giant for what it said was a “hostile and political act.”
Amazon reportedly plans on revealing the additional cost incurred on each product due to President Trump’s aggressive tariffs on its retail platform.
Responding to it in a statement this morning, White House press secretary Karoline Leavitt said it was a “hostile and political act” by Amazon, adding, “why didn’t it do this when the Biden administration hiked inflation to the highest level in 40 years?”
Amazon shares are currently down 25% versus their year-to-date high due to uncertainty related to Trump’s new trade policies.
US consumer, not China, to pay for Trump’s policies
Trump tariffs are broadly expected to result in a resurgence of inflation in the US, ultimately pushing the economy into a recession by the end of 2025.
Still, the White House retaliated against Amazon’s reported plans of letting consumers know the extent to which a product’s cost is being raised due to tariffs, adding, “this is another reason why Americans should buy American.”
However, the giant’s move clearly demonstrates that “it’s the American consumer, and not China, who will pay for these policies,” a reporter argued in a press briefing with Leavitt on Tuesday.
Leavitt’s remarks may hint at a growing fracture between Trump and Jeff Bezos, despite the Amazon founder’s recent attempts to mend ties.
After years of public spats, Bezos struck a conciliatory tone in December, expressing confidence in Trump’s second term and suggesting the president had become more measured.
That shift coincided with Amazon donating $1 million to Trump’s inaugural fund, followed by Bezos’ attendance at the inauguration.
Other online retailers are raising prices as well
Amazon is far from alone in highlighting how significantly tariffs could affect business in 2025.
Earlier this week, Chinese fast fashion giants like Temu and Shein, which have long been touted as the ones stealing share from Amazon in online shopping, also resorted to higher prices to navigate the new government’s trade policies.
Temu has even started disclosing the “import charge” already during checkout, which raises the price of a product by as much as 145%.
Is it worth investing in Amazon stock in 2025?
Despite tariff uncertainty, UBS analyst Stephen Ju remains bullish as ever on Amazon stock for 2025.
On Tuesday, Ju maintained his “buy” rating on AMZN shares but lowered the price target to reflect the macro headwinds.
However, his downwardly revised $253 price target still signals potential upside of nearly 40% from current levels.
Ju’s optimistic stance on the tech stock comes just ahead of its first-quarter earnings release.
Analysts expect the company to post earnings of $1.35 per share, up from $1.13 in the same quarter last year.
So, the Nasdaq-listed firm’s financials are broadly expected to sustain their strength in the first quarter, which offers a big enough reason to load up on its shares at current levels.
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