Amazon sees Trump’s trade policies as a new business risk
February 11, 2017 – In Amazon’s annual filing, the company said that Trump’s trade policies are a new threat to its business. Amazon is obviously talking about Trump’s “America First” initiative, which is going to target [mainly] companies who rely on imports. Trump’s nationalist views are reflecting in his policies and things are only going to get worse from here. He wants to impose heavy import taxes and provide relieve to companies who export goods. Amazon is seeing Trump import policies as a direct and serious risk to its business model.
The company fears that their business can suffer huge losses if Trump administration actually implements strict import policies. Amazon also warned that import taxes would increase product price, which means consumers will have to pay much more money to buy things. This also means that Consumer Spending will decrease, which will have negative effects on US economy.
Amazon is the biggest online retailer; its rival eBay isn’t complaining about Trump and his trade policies, I wonder why? :) Amazon Inc. has a revenue that exceeds $135 billion! So you can see how big the company is. It is statements like these that can have huge effects on government policymaking decisions, but in the era of Mr. Trump, I believe these statements won’t do any good. In fact, it seems to me that these statements only further enrage Trump and he responds with threats of even more strict policies.
This is how Trump operates; he wants to rule like a dictator… A Federal Judge has put Trump’s immigration/travel ban on hold; now, he is talking about issuing a new executive order to accomplish the same goal. He already took this matter to the Ninth Circuit Court of Appeals, but his appeal was denied, so his travel ban is currently ineffective. Moments after the Ninth Circuit Court of Appeals ruling, Trump announced [via twitter :) ] that he will take this matter to court again. Analysts believe that this time around, he is going to the Supreme Court.
It is unclear what Trump plans are and how much tax he will try to impose. It is also not clear what products he will target or perhaps he is going after all imported products. In his mind, he is doing this to promote the US based businesses and to help corporate America grow, but many companies, including Amazon, are fearing that Trump trade policies are going to have negative effects on US jobs market and it will also decrease Personal-Spending in USA.