Amazon is grappling with significant challenges due to the U.S. government's imposition of 145% tariffs on Chinese imports. These tariffs have notably increased costs and created supply chain disruptions for Amazon and its third-party sellers, causing concerns about how they will manage their inventory and expenses in the current economic climate. Reuters reported that companies are trying to stockpile goods, but this is only a temporary solution as the tariffs continue to pressure their operations.

The impact of these tariffs is reflected in Amazon's financial outlook as well. The company has issued weaker-than-expected guidance for the second quarter of 2025, citing the tariffs as a major contributing factor to its revised profit expectations. The Financial Times highlighted that Amazon, like many other companies affected by these trade policies, is facing uncertainty and increased operational costs, which have already led to a more cautious profit outlook.

Further complications arise from recent U.S. policy changes, which ended the 'de minimis' tariff exemption for small parcels valued under $800 from China and Hong Kong, now subjected to the steep 145% tariff. This change means that even smaller consumer goods will become more expensive, likely leading to price hikes on electronics, home supplies, and car parts. These developments indicate that Amazon, alongside other retailers, faces a complex economic environment as they navigate ongoing trade tensions and regulatory changes.