Amazon Speaks Out Regarding Trade Protectionism Hurting Business
Feb 14, 2017 04:32 AM EST
On Friday, Amazon.com Inc warned that government actions aimed at pitting domestic companies against foreign competition could hurt its business. The reference could have possibly been in regards to the "America First" agenda of U.S. President Donald Trump.
The company known as the world's largest online retailer stated that "trade and protectionist measures" could halt its ability to grow. This was said in the 2016 annual filling routine description of regulatory risks.
According to Reuters, this specific language has not been observed in the past five annual filings with the U.S. Securities and Exchange Commission in Amazon's warning regarding government regulation. However, in those fillings, the company has quoted trade protection as a risk to international operations and sales in particular.
The President of the United Stated ensured that job creation became a keystone in his policies. He threatens imposing tariffs on imports to control company production and hiring, limiting it to the United States. Congress Republicans also plan to exclude export revenue from U.S. corporate income tax while targeting imports.
Corporate America has been divided over this proposal in the U.S. House of Representatives. Popular exporters such as Boeing Co have assisted the proposal, but a retail association has pitched in that this would result in hiked prices.
For now, it is vague as to what precise protectionist measures worries Amazon the most. So far the company has refused to comment on the border tax plan of the Republican lawmakers. It also declined comment in regards to the new language in its annual filing.
According to CNBC, The language appeared under the header, "Government Regulation Is Evolving and Unfavorable Changes Could Harm Our Business." It did not specifically hint at the change in leadership of the White House.
Separately, Amazon's filing stated that there may be penalties involved for delivering consumer products to entities covered by the Iran Threat Reduction and Syria Human Rights Act, between 2012 and 2016.
Products included apparel, consumer electronics, software and books. Amazon said it processed goods worth about $2,400 for an entity controlled or owned by Iran's government, for example.