Amazon performed better than expected in the first quarter of 2025, but fears that sales were boosted artificially by customers who wanted to avoid Trump tariffs. This would spell trouble for the following quarters.
“Hostile” Amazon
Amazon sales rose by 9 % to 155.67 billion dollars (145 billion euros) in the first quarter, more than the average analysts’ expectation. Earnings per share even rose by 64 % to 1.59 dollars (1.5 euros). E-commerce activities grew 5 % to 57 billion dollars (53 billion euros), while cloud branch Amazon Web Services climbed by 17 % – the slowest growth for a while.
For the second quarter, Amazon expects sales to rise to between 159 and 164 billion dollars (148 and 153 billion euros). Operating profit could be lower, due to the uncertainty surrounding trade relations. CEO Andy Jassy warned that it is difficult to predict which effect tariffs will have athis point.
The CEO added that consumers have been buying more in some categories, as they are stockpiling in anticipation of the potential impact of tariffs. Amazon’s idea to explicitly disclose price increases due to new import duties on products was called a “hostile and political act” by Trump’s government – according to Forbes, president Trump even called Amazon founder Jeff Bezos to vent his wrath. Amazon spokesman Tim Doyle promptly stated that the idea would not be implemented.
