Amazon (AMZN) could face $10B tariff hit, but AI strategy and vendor flexibility offer cushion

From Yahoo Finance: 2025-04-07 14:22:00

The newly announced tariffs by President Trump could impact many stocks, with semiconductor stocks facing higher uncertainty and downside risk. The AI industry is expected to reach $4.8 trillion by 2033, but benefits may be concentrated. Concerns about automation and job displacement are rising, with AI potentially affecting 40% of global jobs.

AI technologies tend to favor capital over labor, leading to income inequality. IMF and UNCTAD warn of the impact on job displacement. AI may affect 60% of advanced economies, worsening income inequality over time. Policymakers need to address these issues to protect vulnerable workers and ensure equitable benefits from technology.

Amazon (AMZN) faces a potential $5-10 billion annualized operating profit hit from Trump tariffs. Strategies to mitigate the impact include negotiating with vendors, price increases, and shifts in product mix. Despite the potential impact, Amazon remains a top AI stock, but other AI stocks may offer higher returns within a shorter timeframe. Check out the report on the cheapest AI stock for more promising investment opportunities.



Read more at Yahoo Finance: Amazon (AMZN) May Face $10B Tariff Hit, But AI Strategy and Vendor Flexibility Offer Cushion