Trump's new tariffs caused tech stocks, like Amazon, to drop significantly in the stock market.

From Nasdaq: 2025-04-07 12:00:00

President Donald Trump announced new tariffs, causing a sharp decline in the stock market. The S&P 500, Dow Jones, and Nasdaq dropped significantly, particularly affecting tech stocks like Amazon.

Amazon’s stock took a hit due to the new tariffs, impacting both sellers and consumers. Sellers may raise prices to cover the 34% tax on Chinese imports, affecting Amazon’s marketplace.

Despite the challenges, Amazon Web Services (AWS) should weather the storm as most tariffs only affect physical goods. AWS is a major profit driver for Amazon, accounting for a significant portion of its operating income.

Amazon has a history of weathering stock price drops, with significant declines in the past. However, the stock has seen tremendous growth over the years, emphasizing the importance of a long-term investment approach.

Investors are advised to consider dollar-cost averaging and taking advantage of potential opportunities amidst the market turbulence. The article also highlights the potential for high returns with timely investments in certain recommended stocks.

Disclosure: The Motley Fool has positions in Amazon, Microsoft, and Alphabet. The author, Stefon Walters, holds positions in Microsoft. Suzanne Frey of Alphabet and John Mackey of Amazon are members of The Motley Fool’s board.



Read more at Nasdaq: Trump’s Tariffs Topple Tech Stocks. Here’s What Amazon Investors Should Know