Skip to Content
Silicon Valley

Trump’s feud with Amazon could have wider effects on the US economy

Measures to curb the e-tailer’s success, reportedly fueled by the president’s distaste for the Washington Post, could steepen the decline of an already-troubled tech economy.

Backstory: Last week, sources told Axios that Donald Trump was “obsessed with Amazon” and wanted to “go after” it. Amazon’s share prices slumped 8 percent on the news.

Now: Vanity Fair has reported that the president is “contemplating a multi-front campaign against Jeff Bezos” to undermine Amazon. That may include a push to cancel the Pentagon’s cloud contracts with Amazon, as well as having the US Postal Service jack up the prices it charges the company. Amazon’s stock fell 5 percent following the news.

Why it’s happening: According to Axios, Trump’s main concern is that Amazon is hurting American business. But sources tell Vanity Fair that really, he wants to hurt Amazon in order to punish Bezos for owning the Washington Post—a newspaper Trump strongly dislikes, and one that he claims Bezos is using as a “political weapon.” Future actions to punish Amazon could, then, be seen as an abuse of power.

Bigger picture: The wider tech industry is already smarting over bad news about autonomous-car fatalities, Facebook’s data scandal, and an impending trade war with China. The Wall Street Journal notes that losses by big companies like Amazon have been spilling over into other firms and even other sectors. A genuine attack against Jeff Bezos could damage the US tech economy at a time when it’s already struggling.

Keep Reading

Most Popular

This startup wants to copy you into an embryo for organ harvesting

With plans to create realistic synthetic embryos, grown in jars, Renewal Bio is on a journey to the horizon of science and ethics.

VR is as good as psychedelics at helping people reach transcendence

On key metrics, a VR experience elicited a response indistinguishable from subjects who took medium doses of LSD or magic mushrooms.

This nanoparticle could be the key to a universal covid vaccine

Ending the covid pandemic might well require a vaccine that protects against any new strains. Researchers may have found a strategy that will work.

Stay connected

Illustration by Rose Wong

Get the latest updates from
MIT Technology Review

Discover special offers, top stories, upcoming events, and more.

Thank you for submitting your email!

Explore more newsletters

It looks like something went wrong.

We’re having trouble saving your preferences. Try refreshing this page and updating them one more time. If you continue to get this message, reach out to us at customer-service@technologyreview.com with a list of newsletters you’d like to receive.