Amazon refutes claims about tagging customs charges
Oops! Amazon Stock Plunges Before Market Open, US Government Slams Company's Plans as "Hostile"
Here comes the bad news for Amazon investors! The tech giant's stock took a massive hit before the U.S. market even opened, shedding over two percent. And guess what? The U.S. government isn't pleased with the company's alleged plans and threw some harsh words its way.
The reason for the stock tumble seems to be tied up with a report from political news portal "Punchbowl," suggesting that Amazon was considering displaying the impact of tariffs on the prices of items sold on its platform. Karoline Leavitt, a U.S. government spokesperson, quickly slammed these plans as "hostile and political."
Treasury Secretary Scott Bessent, on the other hand, sung praises for President Donald Trump's efforts to combat "Biden inflation." Bessent claimed that Trump's deregulation push would eventually boost real household incomes for Americans.
But it seems that the Amazon controversy isn't over just yet. The company has since denied these plans, stating to CNBC that only the low-price-focused Amazon Haul brand had considered making tariff effects transparent for some items—a decision that was scrapped after not being approved. So, it's clear that the affiliate brand won't be moving forward with the plan.
By the way, it's worth noting that Amazon's slump comes amid broader market concerns and a sell-off affecting the Magnificent Seven stocks. The company's year-to-date drop has reached 16%, thanks to tariff-related reasons and pre-earnings jitters that kicked in a day before the report, causing the shares to fall nearly 3%. Analysts are warning about tariff impacts on consumer prices, which they see as a major uncertainty, with UBS highlighting the potential for higher import costs to test consumer spending on Amazon's platform.
So, if you're an Amazon investor, be prepared for some turbulent times ahead. Here's hoping for a swift recovery!
- Despite denying the plans, Amazon's stock continues to face challenges due to the controversy surrounding potential tariff impacts on its platform.
- Karoline Leavitt, a U.S. government spokesperson, had labeled Amazon's alleged plans as "hostile and political."
- The tariff issue seems to be a significant concern in the finance and business world, with analysts warning about potential higher import costs that could test consumer spending on Amazon's platform.
- Scott Bessent, Treasury Secretary, lauded President Trump's deregulation efforts for their potential to boost household incomes for Americans.
- The Amazon stock slump is part of a broader market concern affecting the Magnificent Seven stocks, with its year-to-date drop reaching 16%.
