Amazon sellers are stocking up in the face of tariffs, but it’s a short-term fix

Amazon, in a new tab opened on Thursday, sought to alleviate investor worries regarding the effects of the tariffs implemented by the Trump administration on its e-commerce operations; however, the company might have limited choices remaining to keep small third-party sellers from leaving amid overwhelming taxes.

U.S. President Trump has enacted a 145% tariff on imports from China, a decision that has forced firms like Amazon, Walmart, and Apple to reevaluate supply chains and seek methods to reduce expenses.

Amazon stated that it has not observed any decline in demand so far, nor a significant rise in the average selling prices of retail products. It stated that there had been increased purchases in certain categories.

During a post-earnings call with investors, CEO Andy Jassy mentioned that the company was collaborating with its sellers to advance orders to the U.S. sooner to prevent additional tariffs on goods. However, analysts noted that increasing inventory was merely a temporary solution. As consumers increase their buying to evade tariff effects, the company and its vendors might find it challenging to prevent price hikes in the upcoming months as they deplete stock and make new orders.

Amazon stocks fell by approximately 1% on Friday. Apple shares dropped close to 4% after the iPhone manufacturer projected on Thursday that tariffs would increase costs by approximately $900 million for the quarter ending in June if rates remain unchanged. Apple’s CEO Tim Cook presented significant alterations to the company’s supply chain. Amazon’s AWS cloud division, which drives its earnings, typically serves as a safeguard against fluctuations in its e-commerce sector. However, the performance of that segment in the first quarter let down investors after Microsoft’s Azure cloud division exceeded forecasts.