Amazon share price jumps over 7% on US markets after US-China deal shows an upcoming 115% tariff cut

Amazon Inc. share price jumped more than 7 per cent in the US market session on Monday, May 12, after the US-China deal showed optimism of a 115 per cent tariff cut between the two nations, easing the ongoing trade war. 

The United States and China, after three days of discussion, decided to bring down the raging tariff rates on goods imported by both nations. China proposed to reduce the tariffs on goods imported from the US to 10 per cent, compared to its current level of 125 per cent.

The US has also decided to bring down the tariffs on Chinese goods imports to 30 per cent, compared to its current 145 per cent levels, according to Mint's earlier report.

As the two largest economies have temporarily agreed to a lower tariff, investors are taking this news as the first ray of hope amid the raging tariff war between the United States and other world nations, especially China. This marks the first step towards de-escalation from geopolitical uncertainties. 

For investors of the e-commerce giant Amazon, people are celebrating the development as this paves the way for the company to import goods at a low tariff rate compared to the 145 per cent levels. Companies like Amazon heavily rely on China to import their goods into the US to cater their customer base and be price competitive.

Amazon Share Price

Amazon shares are trading 7.37 per cent higher on Monday's US market session at $207.31 as of 12:41 p.m. (EDT), compared to $193.06 at the previous stock market close. The announcement came right ahead of Wall Street's opening, so the US Pharma stocks, along with companies like Amazon, gained on May 12. 

Amazon shares hit their 52-week high level at $242.52, while the 52-week low level was at $151.61, according to data collected from MarketWatch.

US-based ecommerce giant Amazon shares have given US market investors more than 72 per cent returns on their investment in the last five years and over 11 per cent returns in the last one-year period.

However, on a year-to-date (YTD) basis, the shares have lost 5.55 per cent in 2025. Amazon's market capitalisation (M-Cap) was at $2.208 trillion as of May 12, according to CompanyMarketCap data.

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