Amazon’s stock has surged 2% after the US government agreed to maintain the “de minimis provision” that allows small packages valued at less than $800 to enter the country duty-free. The move was expected to harm Chinese e-commerce sites, but it will also benefit American online retailers like Amazon and eBay.
The Trump administration’s decision comes as a relief to companies like Amazon, eBay, and Etsy, which rely on the duty-free exemption to import goods from China. Removing this provision would have overwhelmed US Customs with a massive influx of shipments valued at less than $800.
Despite initial concerns about the tariffs, the news has sent shockwaves through the market, with EBAY and ETSY stocks also rising. The removal of the duty-free status was aimed at hurting low-cost shopping sites from China, but it will now impact US-based companies instead.
Amazon’s stock has gained 35% over the last 12 months, with analysts predicting a Strong Buy rating among 47 Wall Street analysts. The average price target for AMZN stock is $267.13, implying a 14.71% upside potential.
Source: https://www.tipranks.com/news/amazon-amzn-stock-rises-as-trump-maintains-duty-free-status-on-small-package-shipments