Friday, August 1, 2025

2 Reasons to Avoid Amazon Stock as Tariffs Escalate

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Despite President Trump’s suspension of most tariffs, those on Chinese goods remain high and are expected to rise, impacting companies like Amazon (AMZN). With approximately 62% of Amazon’s items sold through third-party sellers, many of whom source from China, the tariffs could force price increases or seller exits, reducing product variety and revenue. Additionally, a slowdown in IT spending may adversely affect Amazon Web Services (AWS), making Amazon stock a risky investment amidst potential economic downturns.

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