Amazon Sellers Raise Prices Amid Trump's Tariff Impact

Amazon and other third-party sellers have been raising prices on goods due to increased tariffs on Chinese imports imposed by President Trump, straining sellers who rely heavily on China for manufacturing. The tariff hikes have led to average price increases of nearly 29% across a wide range of Amazon products, forcing some sellers to consider moving production to countries like India and Mexico, though such transitions take time. Amid these challenges, Amazon's stock surged after President Trump hinted at a potential reduction in tariffs following lobbying from major retail CEOs, including Walmart’s Doug McMillon, who warned that high tariffs risked driving up prices and causing inventory shortages. The prospect of tariff relief eased investor concerns, with Amazon’s stock jumping as much as 7% and reaching new highs, reflecting renewed confidence in the company’s outlook. Despite ongoing uncertainty in U.S.-China trade relations, the possibility of lower tariffs and stability at the Federal Reserve have bolstered market sentiment, particularly benefiting Amazon, which is more exposed to China-related supply risks than competitors like Walmart. Analysts remain optimistic about Amazon’s long-term prospects, maintaining strong buy recommendations and high target prices.