Mark Cuban Warns: Tariffs Could Spell Trouble for Amazon. Is Your Portfolio at Risk?

I like Amazon (NASDAQ: AMZN) I hold shares in the large corporation that specializes in e-commerce and cloud services. My household frequently purchases items from Amazon. We also utilizeEcho devices powered by Alexa. Each day, I spend time reading books on my Kindle.

I have a high regard for Mark Cuban as well. His successful track record in business says enough about him. Additionally, he is quite engaging when appearing on ABC's shows. Shark Tank (I apologize for his departure from the show). He strikes me as an honest person whose views align with mine on numerous topics.

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Given this, Cuban's latest forecast suggests tariffs The issue at Amazon that particularly caught my eye. Should shareholders of Amazon (count me as one) be worried?

Why Cuban believes tariffs could negatively impact Amazon

It appears Cuban isn’t particularly fond of Amazon. Earlier this year, he expressed via Twitter that he looks unfavorably upon any reliance on Amazon when assessing businesses for potential investment. The multi-billionaire has consistently criticized the fees Amazon imposes on vendors using their online marketplace.

Amazon is also competing with Cuban’s Cost Plus Drugs online pharmacy. Both Amazon Pharmacy's RxPass and Cost Plus Drugs aim to reduce medication expenses for customers.

Nevertheless, I don't believe either element influences Cuban's view on why he thinks the Trump administration's tariffs will negatively impact Amazon. He offered a clear insight into his stance in a recent posting on the social media network Bluesky.

If these tariffs remain in place, it could get rough for Amazon, yet incredibly beneficial for all the American sellers.

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-- Mark Cuban ( @mcuban.bsky.social ) April 5th, 2025 at 8:43 PM

Cuban’s remarks regarding Bluesky were in response to another post that showcased Amazon U.S. Marketplace statistics analyzed with SmartScout, a program designed to examine Amazon data. These figures highlight the significant share of items being sold via Amazon in the U.S., sourced from Chinese suppliers. It's important to mention that these numbers do not account for goods coming directly from China but then sold through non-Chinese-based sellers on Amazon. This detail holds weight as the White House has imposed hefty duties amounting to 145% on merchandise originating from China.

Playing devil's advocate

Initially, it appears Cuban might be correct in suggesting that "things look grim for Amazon" due to President Trump's tariffs on China. However, let me offer an opposing viewpoint.

Using my approximate estimates from the SmartScout chart shared by Cuban, Chinese sellers likely contribute around $150 billion to Amazon’s U.S. market. However, we should not presume that this would result in a comparable adverse economic effect on Amazon.

Firstly, customers might purchase numerous items formerly acquired from Chinese intermediaries directly from vendors in various other nations with significantly reduced import taxes. Cuban went so far as to suggest that American merchants could particularly thrive due to the predicaments faced by these Chinese intermediaries. This assertion holds weight solely if the American dealerships offer goods manufactured within the U.S. (or not sourced from China). Otherwise, his point may lack substantial backing.

In connection with this, the adverse effects from reduced sales through Chinese resellers (alongside decreased fees for Amazon) might be somewhat mitigated by higher spending elsewhere. Notably, Amazon currently operates an Amazon Haul store front which provides customers with affordable options. This makes it the lowest-priced U.S. online retailer according to Profitero for eight consecutive years now. Should Americans become more frugal, numerous shoppers may turn to Amazon to stretch their dollars further.

In conclusion, Cuban added an important condition to his forecast about Amazon’s challenges: “If these tariffs remain.” Nevertheless, President Trump stated earlier this week that the Chinese tariffs will decrease significantly and won’t approach their present elevated rates.

What actions should investors take if Cuban's viewpoint proves correct?

Assuming the high tariffs persist and Cuban’s assertion holds true that Amazon would be adversely affected, what course of action should investors take? In my opinion, the appropriate strategy would be to periodically purchase shares of Amazon and maintain them over an extended period.

You can stake your entire property that Amazon will use every means possible to reduce the effect of tariffs on its profitability. Keep in mind that the tariff policies implemented under the Trump administration are likely not going to last indefinitely.

Maybe the federal courts will rule them as unconstitutional ; Twelve states along with various business-oriented organizations have already initiated legal proceedings. Maybe the White House will negotiate trade agreements that lower the tariffs to far more manageable degrees.

Should Americans decide to make a change in 2028, they might choose a new president to overturn current policies. Maybe that same outspoken tycoon, known for sharply criticizing the Trump administration’s high tariffs, will join the race. After all, it won’t be unprecedented for someone from a television background to take up residence in the White House.

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John Mackey, who previously served as CEO of Whole Foods Market—an entity now owned by Amazon—is part of The Motley Fool's board of directors. Keith Speights The Motley Fool holds stakes in Amazon. They also endorse buying Amazon stock. Additionally, The Motley Fool discloses their holdings in Amazon. disclosure policy .