Amazon 'Relatively Well-Positioned' To Face Trump's Tariffs: Analyst

President Donald Trump officially implemented new tariffs on China-made goods as of Tuesday. Here's a look at how recent trade policy developments could affect e-commerce giant Amazon.com, Inc. AMZN.

What To Know: Trump issued an executive order placing a new 10% tariff in addition to the 10% or 25% tariffs he levied on Chinese imports during his first term.

Another key factor in Trump’s executive order is the elimination of the de minimis exemption, which previously allowed packages valued under $800 to enter the U.S. without incurring tariffs.

The new regulations could hit Chinese e-commerce retailers like Shein and PDD Holdings, Inc.'s PDD Temu while potentially benefiting Amazon.

Expert Ideas: Trump is "clearly focused on getting Beijing to the negotiation table," Wedbush analysts, led by Dan Ives, said in a note on Monday.

"The negative impact on the tech sector will ultimately be much more bark than bite in our view," they added.

BofA Securities analysts said on Monday that Amazon is "relatively well-positioned" to weather Trump's new tariffs. The analysts pointed to Amazon's "low-price focus and a large third-party marketplace (60% of units) that captures final value commissions & any geographic substitution in demand," per CNBC.

CNBC's Jim Cramer says Amazon could potentially draw more e-commerce market share now that Trump closed the de minimus loophole. Temu and Shein used that loophole to establish their large presence in the U.S.

Amazon's recently launched ultra-affordable platform, Amazon Haul, is also better positioned under the new tariff structure to compete with Temu and Shein who offer extremely low prices on goods imported from China.

Price Action: According to Benzinga Pro, Amazon shares are up 2.02% at $242.21 at the time of publication Tuesday.

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