2 Reasons to Avoid Amazon Stock as Tariffs Escalate

From Nasdaq: 2025-04-12 05:50:00

President Trump has paused some tariffs, but tariffs on Chinese goods are escalating, impacting companies like Amazon. 62% of items sold on Amazon in Q4 2024 came from Chinese sellers, facing a 145% tariff. This could lead to higher prices, reduced variety, and lower revenue, making Amazon a risky investment.

Investing in Amazon may not be wise due to heavy reliance on Chinese sellers and potential impacts of tariffs. AWS could be affected by higher costs and slowing IT spending. A recession combined with tariff impacts could further strain Amazon’s retail and cloud businesses, making it a risky stock.

Consider investing in other stocks instead of Amazon, as per Motley Fool’s Stock Advisor. The 10 best stocks may offer better returns than Amazon. Past recommendations have shown significant returns, outperforming the S&P 500. Join Stock Advisor for access to the latest top 10 list and potential investment opportunities.



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