Trump in Panic as Amazon Works on US Exit — $13B Tariff Fallout Hits Supply Chains!

Trump in Panic as Amazon Works on US Exit — $13B Tariff Fallout Hits Supply Chains!

Amazon is facing severe disruptions due to President Trump’s tariff policies, with projected losses exceeding $13 billion over three years. Tensions peaked after a leaked Punchbowl News report revealed Amazon planned to show the cost impact of tariffs directly on product listings, sparking backlash from the White House. Under political pressure, Amazon canceled the feature, but the conflict exposed deeper concerns about profitability, supply chains, and political interference.

Approximately 25% of Amazon’s direct sales come from Chinese suppliers, and many third-party sellers are also based in China. With tariffs reaching up to 25%, costs surged. Some sellers raised prices or stopped selling in the U.S. altogether, leading to stock shortages and delivery delays. Amazon attempted to offset this by paying higher rates to large suppliers and exploring alternatives in Vietnam and Mexico, but these markets lack the capacity to replace China.

The situation worsened with the end of the de minimis rule, which had allowed imports under $800 to bypass tariffs and customs. Losing this exemption meant millions of small parcels were now subject to duties, threatening Amazon’s fast delivery model and low-cost product strategy. Small international sellers, vital to Amazon’s platform, are especially vulnerable, facing rising costs and regulatory complexity.

Amazon’s internal response was dramatic. Strategic planning meetings were suspended, and executives began discussing relocating major operations outside the U.S. Potential destinations include Canada, Singapore, and the Netherlands, all offering better regulatory environments and tax incentives. A full or partial exit could result in massive U.S. job losses, reduced tax revenue, and a weakened technology sector.

Amazon’s challenges are part of a broader retail crisis. Companies like Walmart, Target, and Macy’s are also hit hard. Macy’s downgraded its earnings forecast, while Ross Stores refused to issue one at all, citing uncertainty. Tariffs on Mexican goods are expected to increase prices on common items like fruits, adding further pressure.

Retailers are fighting back with supply chain optimization and supplier renegotiations, but no innovation can fully neutralize the impact of erratic trade policy. The National Retail Federation warns that sustained tariffs will inflate prices and reduce consumer demand.

Amazon’s struggle reflects a much larger shift. If the U.S. remains hostile to global commerce, even its largest and most successful companies may be forced to leave — reshaping the future of retail, and the economy itself.
#Amazon #Trump #Tariffs
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