Mark Zuckerberg, CEO of Meta Platforms Inc.; From left, Lauren Sanchez; Jeff Bezos, founder of Amazon.com inc.; Sundar Pichai, CEO by Alphabet Inc.; and Elon Musk, CEO of Tesla Inc., during the 60th inauguration in the rotunda of the US capitol in Washington, DC, on January 20, 2025.
Julia Demaree Nikinson | Bloomberg | Getty pictures
President Donald Trump described Jeff Bezos as “Jeff Bozo”. After more drama between the two men, Trump calls the Amazon founder a “good guy”.
Amazon's earnings report planned for Thursday already had investors due to the comprehensive tariffs of the President and the potential effects that they will have on the numerous companies in the Tech giant. With its stock price by 17% this year, Amazon is expected to report the slowest sales growth rate for a period of 2022 since 2022, and this does not reflect the taxes announced at the beginning of April.
The tension was reinforced at the beginning of this week.
The White House criticized Amazon on Tuesday that he had supposedly planned to show on his website how much the new tariffs at the Top -US -Traden partners increase prices for consumers. After the story of Punchbowl News had been released, Trump called Bezos to complain.
Amazon replied quickly and said that no such change would be received.
“This was never approved and will not happen,” Amazon wrote in a blog post that corresponded to a total of 31 words.
President Trump often hurled insults in Bezos during his permanent term in the White House, especially because of the possession of the Amazon founder at the Washington Post. Bezos has recently done everything to improve the relationship and to travel to Washington, DC, for the inauguration in January.
The president said he was satisfied with her last call.
“Jeff Bezos was very nice,” Trump later told reporters on Tuesday. “He was great. He solved the problem very quickly and he did the right thing. He is a good guy.”
Amazon made it clear that it was only considered to display the import fees for products that were sold in the discount story Amazon Transporter, which competed with the ultra-barent Chinese retailer Temu. Products for transport costs 20 US dollars or less and many of them are sold directly from China using the liberation of minimis trade. This gap is expected to disappear next month
The collision with Trump underlines the pressure that Amazon underlines to stump the effects of Trump's aggressive tariffs on Chinese imports, the total of 145%. The company is primarily exposed to its retail unit. Amazon moves into some products from China, while many sellers on their third -party market rely on the second largest economy in the world to establish or assemble their products.
The topic of tariffs will float in the first quarter of Amazon's yield report. Investors would like to know how higher import costs could affect margins and whether the uncertainty in relation to the tariffs led to buyers were more careful with their expenses.
According to the LSEG, Amazon is expected to identify a profit per share of $ 1.37 and sales of $ 155.04 billion, which would represent the annual growth of a little more than 8% and would be the slowest expansion rate since the second quarter of 2022.
“Difficult decisions”
Andy Jassy, CEO of Amazon, said CNBC in the early this month that the company had not returned the demand from consumers. Amazon will “try to do everything we can” to keep prices for buyers low, including newly negotiated terms with some of his suppliers, said Jassy. But he confirmed that some third -party sellers “have to pass on these costs for the tariffs to consumers”.
UBS analysts said on Tuesday in a reference to customers that at least 50% of the articles sold on Amazon could be subject to Trump's tariffs and could thus become more expensive.
“Consumers may therefore have to make more difficult decisions where they can assign their dollars,” wrote the analysts who have a merchanting for Amazon shares.
According to Amazon, Amazon has put some of his suppliers under pressure to reduce prices to reduce the effects of Trump's tariffs according to Financial Times.
Some sellers have already collected the prices and reduced advertising expenses because they claim with higher import costs. Others want to secure new suppliers in countries such as Vietnam, Mexico and India, where the tariffs increase under Trump, but compared to the expenses that were imposed on goods from China are mild.
Temu and competing discount -pp Shein implemented price increases on many articles last week. Since then, Temu has added “import fees” of 130% and 150% for some products.
Wall Street will probably concentrate on Amazon's comment on the terms and conditions. The third quarter includes the results of the Prime Day Shopping event from Amazon, which usually takes place in July for two days. Amazon seller previously informed CNBC that they may hold fewer offers for this year's Prime Day to maintain the inventory, or because they cannot afford to further mark products.
In a reference to customers this week, the analysts of the Bank of America announced that Amazon gave Amazon's potential in his winning report on Thursday, although the effects may be larger in the third quarter. “
Analysts from Oppenheimer said that investors are “very insecure” in relation to the effects of tariffs on Amazon's e-commerce business. The company has an outperform assessment for the Amazon share.
“We assume that the quarter of the quarter is the most affected because the sellers should have before the tariff by May and therefore do not increase the prices,” the analysts wrote.
Amazon did not comment on his short explanation on Tuesday.
REGARD: Trump spoke to Bezos
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