Mark Cuban, the billionaire investor, is expressing worry over how new U.S. trade policies could impact Amazon Inc.’s AMZN global supply chain.

Potential Supply Chain Disruptions

What Happened: In a recent post on X, Cuban highlighted concerns raised by Ryan Petersen about the implications of reciprocal tariffs and non-tariff barriers in countries like China and India. Cuban specifically questioned whether these policies would disrupt Amazon’s global supply chain, which significantly relies on China for its operations. He pointed out that the removal of the $800 de minimis exemption could increase operational costs.

This change could adversely affect Amazon’s low-margin e-commerce business, which heavily depends on international imports.

Debating the Use of Tariffs

In another post, Cuban responded to an inquiry regarding the rationale behind U.S. partners imposing tariffs despite their negative reputation. He noted that while he recognizes tariffs can bolster domestic industries, their use should be strategic. “If you want to use them to offset income taxes, that’s a different purpose,” Cuban pointed out.

Cuban referred to a podcast featuring Commerce Secretary Howard Lutnick, explaining that utilizing tariffs to replace taxes on overtime, social security, and tips could necessitate substantial tariffs on numerous products. This scenario may disproportionately burden low-income individuals who aren’t seeing tax reductions.

Historical Trade Policy Concerns

Why It Matters: This is not Cuban’s first foray into discussions about trade policy impacts. He has previously criticized the Trump administration for the economic challenges faced by many supporters due to these tariffs. He suggested that the economic strain on traditionally red states could have electoral repercussions.

Retaliatory tariffs from nations like China and Canada have targeted U.S. industries that employ approximately 7.75 million workers, with about 4.48 million jobs concentrated in areas that backed Trump in the last election, according to analysis from The New York Times.

As new trade policies aim to correct trade imbalances by April 2025, Cuban’s observations underscore the challenges companies like Amazon may confront soon. However, it is essential to note that Amazon’s primary source of profit lies in Amazon Web Services, which accounted for 74% of its revenue as of 2024. This could help mitigate the financial impact of increased operational costs from tariffs.

A Look at Amazon’s Stock Performance

Recently, Amazon’s stock has faced challenges, losing nearly 8% in value over the past month. The stock closed at $196.21 on Friday, according to Benzinga Pro.

Currently, Amazon boasts a momentum rating of 71.95% and a growth rating of 5.85%, as per Benzinga’s Proprietary Edge Rankings. The Benzinga Momentum metric evaluates a Stock‘s relative strength based on patterns and fluctuations in its price over various timeframes, ranked against other stocks. For more information on stocks and insights into momentum opportunities, readers can sign up for Benzinga Edge.

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Disclaimer: This content was partially produced with the help of AI tools and reviewed for publication by Benzinga editors.