Consulte-toi Trump et Bezos - apparition anticipee de rapport des ventes tendu pour Amazon

Consulte-toi Trump et Bezos - apparition anticipee de rapport des ventes tendu pour Amazon

Rewritten Article:

Trade Tensions Heat Up: Amazon and Trump's Rollercoaster Relationship

President Donald Trump famously called Jeff Bezos the "Richest Man on the Face of the Earth" and "Jeff Bozo." Now, after their rocky relationship, Trump surprisingly has nothing but praise for the Amazon founder.

The technology giant, Amazon, is due to release its earnings report tomorrow, and investors are already on edge due to Trump's hefty tariffs and its potential impact on the business. With the Amazon stock plummeting by 17% this year, Amazon is predicted to record its slowest rate of revenue growth since 2022, and this doesn't take into account the tariffs announced in early April.

The tension between the two parties escalated early this week.

Tariff Tussle

The White House criticized Amazon for allegedly planning to display on its site how much the newly imposed tariffs on key trading partners were driving up prices for consumers after news broke in Punchbowl News. Trump reportedly called Bezos to vent his frustration over the matter.

Amazon swiftly responded and denied any plans to change its platform.

"We never approved this, and it's not happening," Amazon posted on its blog, only using 31 words for the statement.

President Trump never missed an opportunity to berate Bezos when he was in office, mainly due to the Amazon founder's ownership of the Washington Post. Bezos made an effort to mend the relationship by attending the inauguration in January.

Trump expressed satisfaction after their recent phone call.

"Jeff Bezos was really polite," Trump declared to reporters. "He was excellent. He resolved the issue quickly and did what was right. He’s a good man."

To clarify, Amazon was considering displaying import fees on products sold on its lesser-known storefront, Amazon Haul, which competes with ultra-cheap Chinese retailer Temu. The loophole allowing products costing $20 or less to be shipped from China without tariffs is set to close after Trump signed an executive order next month.

The face-off with Trump underscores the pressure Amazon is under to offset the impact of Trump's aggressive tariffs on Chinese imports, which total 145%. While Amazon sources some products from China, many third-party sellers heavily rely on the economy to manufacture their products.

This tariff topic will hover over Amazon's first-quarter earnings report. Investors will keenly observe whether higher import costs could impact Amazon's margins and if uncertainty around the tariffs has dulled consumer spending.

Amazon is predicted to report earnings per share of $1.37 and revenue of $155.04 billion for the quarter, representing an annual growth of just over 8% – the slowest rate since the second quarter of 2022.

'Tough Choices' Ahead

Amazon CEO Andy Jassy informed CNBC earlier this month that consumer demand has remained steady. Amazon is "going to give it our best shot" to keep prices low for shoppers, he said, by renegotiating terms with suppliers and possibly absorbing some costs. However, he acknowledged that some third-party sellers would have to pass the tariff costs on to consumers.

UBS analysts suggested that at least 50% of items sold on Amazon are subject to Trump's tariffs, potentially leading to higher prices for consumers.

Amazon has reportedly pressured some of its vendors to reduce their prices to tackle the tariff impacts, according to the Financial Times.

Meanwhile, some sellers have already raised prices and cut back on advertising spend to counter higher import costs. Others are looking to secure new suppliers in countries like Vietnam, Mexico, and India, where tariffs are increasing but are marginally lower compared to the levies imposed on Chinese goods.

In response to the tariffs, Temu and rival discount app Shein have increased prices for many items. Temu has subsequently added "import charges" ranging between 130% and 150% on some products.

Wall Street will likely focus on Amazon's commentary surrounding business conditions going forward. The third quarter, which includes the Prime Day shopping event, will be a critical factor as sellers may choose to run fewer deals for this year’s event to conserve inventory or due to financial constraints.

Bank of America analysts anticipate that Amazon may provide a "wider guidance range" in its earnings report tomorrow, suggesting the impact may be more significant in the third quarter.

While Amazon itself isn't directly tariff-exposed, its marketplace ecosystem faces headwinds from reduced seller profitability and price-sensitive consumers. The long-term effect depends on whether tariffs endure long enough to fundamentally reshape global supply chains.

Additional Insights

Tariff's Indirect Impacts

• Crunch on third-party sellers: Several Amazon vendors rely on imported goods (like clothing, furniture, electronics) now levied with tariffs (ranging from 10%-46% depending on origin[2]). This could decrease profit margins for smaller sellers.
• Price inflation: Affected categories (like clothing and furniture) might see price spikes, potentially reducing consumer demand on Amazon.
• Transborder challenges: Vendors intending to sell internationally (such as the case of Haand Ceramics' lost business[1]) could witness declining sales on Amazon's global platforms.

Future Considerations

• Reshoring Acceleration: If domestic manufacturing prospers, there might be a rise in U.S.-made goods on Amazon, although persistent tariffs on materials may continue to hinder this shift[1].
• Market Dominance: Larger sellers with pricing power could absorb tariff costs more efficiently than competitors, potentially resulting in marketplace consolidation favoring established vendors on Amazon.
• Supply Chain Shifts: As tariffs affect raw materials (like threads, ceramics)[1], even U.S.-based vendors on Amazon could face prolonged cost pressures, affecting product variety and innovation.

1. President Trump criticized Amazon for potentially displaying imported tariff costs on their site, a move that could increase prices for consumers.
2. The escalating tension between Trump and Amazon resulted from the tech company's plan to display tariff costs on products sold on Amazon Haul.
3. The tariffs imposed by Trump on key trading partners are predicted to impact Amazon's revenue, as the company sources some products from China.
4. The potential impact of Trump's tariffs on Amazon's margins and consumer spending will be under scrutiny in Amazon's first-quarter earnings report.
5. Amazon CEO Andy Jassy has stated that the company is considering renegotiating terms with suppliers and absorbing some costs to keep prices low for shoppers.
6. UBS analysts suggest that at least 50% of items sold on Amazon are subject to Trump's tariffs, which could lead to higher prices for consumers.
7. Some sellers on Amazon have already raised prices and cut back on advertising spend to counter the higher import costs triggered by Trump's tariffs.

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