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You could be forced to pay more for Amazon products thanks to Trump tariffs

Home> News> Tech News

Published 12:05 7 Apr 2025 GMT+1

You could be forced to pay more for Amazon products thanks to Trump tariffs

Hitting the consumer hard in the pocket

Tom Chapman

Tom Chapman

Featured Image Credit: NurPhoto / Contributor via Getty
Donald Trump
Amazon
China

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Despite President Donald Trump promising that things will be cheaper for the average American in his quest to make America 'great' again, he seems to be off to a sluggish start. During his tariff announcement, the POTUS said groceries are down, whereas in reality, the likes of bread and toilet paper have remained the same, while milk and gasoline have seemingly gone up. But hey, at least peanut butter and eggs are down.

There are already fears that Donald Trump's trade tariffs could upend the tech world, especially as China is hit with a hefty 54% reciprocal tariff. As so many parts or whole products themselves come from China, we're already bracing for the likes of the iPhone to go through the roof. Nintendo has even pulled back the release date of the Nintendo Switch 2 amid concerns over the import tariffs, while Trump is accused of triggering a global trade war.

Amazon's prices could soon be affecting the customer (Bloomberg / Contributor / Amazon)
Amazon's prices could soon be affecting the customer (Bloomberg / Contributor / Amazon)

Amazon stocks dipped by 6% in the aftermath of the announcement, and Jeff Bezos lost nearly $16 billion. Despite Amazon's credentials as a figurehead of the American commerce scene, its legacy as a multinational organization could soon see prices rise.

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As noted by Intelligencer, Amazon lost a tenth of its value on Thursday alone. Down 28% overall, it's suggested that Amazon's bid for TikTok could put it on the wrong side of China. Trump previously toyed with removing the de minimi, which meant consumers didn't have to pay duty and import tax on daily shipments under $800. This saw the likes of Shein and Temu flourish, but without it, things could largely be on par with Amazon's pricing.

Amazon relies heavily on its relationship with China thanks to a huge number of its goods being manufactured there. The online marketplace is stocked with third-party merchants, most of them based in China. As tech and e-commerce analyst Juozas Kaziukėnas reminds us, Amazon has “only accelerated its dependence on China. It has massive training centers for sellers in China, it organizes conferences for sellers. Any tariffs on China obviously have a massive impact on everything Amazon sells."

With Amazon lacking the 'headroom' to take on the tariffs, prices could soon climb.


Using the example of spatulas, the outlet notes that prices going up for cheaper spatulas on Amazon will likely lead to prices on other spatulas you might buy also going up. Amazon's lower-end competitors will be neutralized, and consumers will go back to Amazon, and although this could be a win for the shopping giant, it's ultimately we who lose out here.

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Kaziukėnas concluded: "During recessions, customers go for a cheaper alternative. Amazon equally benefits from situations like this."

Even if discretionary spending goes down, Amazon has diversified enough that it would likely survive while putting its prices up.

With the Magnificent 7 of Amazon, Alphabet, Apple, Meta, Microsoft, Nvidia, and Tesla wiping almost a trillion dollars off their collective worth within a day of the tariffs being announced, Trump could be entering the history books for all the wrong reasons. Even 'First Buddy' Elon Musk has spoken out about them, and even though the POTUS has been accused of levying these tariffs as a way to get his enemies to fall in line and to help America politically, there are major fears about what impact they could have on our shopping baskets.

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