President Donald Trump’s tariff policies could have an adverse impact on more than just the supply chain of e-commerce giant Amazon.com Inc. (AMZN), Raymond James analyst Josh Beck said in a note on Monday.

Beck outlined near-term headwinds that could impact Amazon’s topline – this includes e-commerce and advertising businesses, according to a report by TheFly.

The analyst estimates that 30% of Amazon’s gross merchandise value and 15% of its advertising business stems from China.

“Regardless of tariff ‘stickiness’, further supply chain/logistics diversification likely creates a drag given China ... and rural U.S. demand-side platform (DSP) (11% shipping) exposures,” Beck said, according to a report by CNBC.

Beck downgraded the Amazon stock to ‘Outperform’ from ‘Strong Buy’ and trimmed the price target to $195 from $275.

The analyst said he remains “constructive” about the potential of Amazon’s artificial intelligence efforts and long-term investments.

Despite this, Beck underscored that Wall Street is currently underestimating the pressure caused by tariffs and an uneven macro environment on the company’s fiscal year 2025 and 2026 earnings.

For the time being, a re-rating of the Amazon stock remains contingent on greater investment and return visibility, the brokerage said in the note.

Scotiabank analyst Nat Schindler lowered their price target to $250 from $306 and highlighted that stocks with exposure to China have underperformed, while “safer” names have outperformed.

The Trump administration has imposed up to 245% tariffs on goods imported into the U.S. from China, while China’s retaliatory tariffs on U.S. goods stand at 125%.

Amazon’s stock was down more than 3.6% at the time of writing.

Meanwhile, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down more than 2% on Monday morning.

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