Amazon may need to raise prices to offset latest tariff blow

Amazon.com Inc will need to raise prices in the United States by about 2.1%-2.6% on average to offset the impact of fresh tariffs slapped by the Trump administration on various Chinese goods, Bank of America Merrill Lynch analysts estimated.

The United States began imposing 15% tariff on a variety of Chinese goods on Sunday - including footwear, smart watches and flat-panel televisions, intensifying the trade tension between the two countries.

Amazon would need to increase prices by 2.1% on average in its first party marketplace to offset the impact, while for third party marketplace average prices would have to go up by 2.6%, BofA said in a note dated Sept. 3.

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The brokerage estimates online furniture retailer Wayfair Inc will also need to hike average prices by 4.6%.

BofA continues to rate Amazon "buy" and Wayfair "neutral".