Amazon.com (AMZN) faces "material cost inflation" as global tariffs escalate, BofA Securities said Wednesday in a report.

President Donald Trump's tariffs announcements "were much larger than expected," and "the widespread (and much larger) 2025 global tariffs are a potential new ballgame for supply chains and costs," the report said.

BofA cut its estimates for 2025 gross profit by $10 billion and lowered its per-share earnings projection to $5.76 from $6.16. " If 40%+ tariffs on Asia countries stick, or in a recession scenario, we would expect a bigger impact," the report said.

Still, "we note the tariff, and supply chain, situations remain fluid," and Amazon is "relatively well positioned" because of its third-party seller marketplace, emphasis on keeping costs low and profitable cloud computing business, BofA said.

BofA reduced its price target on Amazon stock to $225 from $257 and maintained the buy rating.

Amazon shares rose 0.6% in recent Wednesday trading.

Price: 171.62, Change: +0.96, Percent Change: +0.56