By Katherine Hamilton

eBay is wrestling with how tariffs will impact both its sellers who source products from overseas and buyers worried about their pocketbooks.

Both factors played into the company's outlook for the current quarter, which fell below Wall Street expectations.

Executives at the online marketplace said tariffs are top of mind for its customers, who are expecting trade challenges from new U.S. tariffs and are choosier about spending amid an uncertain economy.

Sellers, meanwhile, have other considerations in mind, including whether their products will cost more to bring into the U.S. and how much of that to pass onto consumers with higher prices.

"There's a lot of concern about the tariffs from our sellers," Chief Product Officer Eddie Garcia said. "How it might affect delivery rates for items and when people could expect to see that."

The stock fell 11% to $61.81 Thursday morning, making it the third worst performer in the S&P 500.

President Trump said Thursday tariffs will go into effect next week, which include duties on most Mexican and Canadian imports, and an extra 10% tax on Chinese goods. At eBay, China to U.S. imports make up about 5% of the total value of goods sold on its platform, Chief Executive Jamie Iannone told investors Wednesday, and the majority of that is already subject to tariffs.

The uncertainty around how the economy will react to tariffs and the new administration is weighing on shoppers across the globe. Baked into eBay's quarterly outlook are a variety of scenarios, depending on how policies shake out, which resulted in a lower revenue range.

The issue isn't limited to the U.S. Demand in Germany and the U.K. have been even lower than in the U.S. due to weak consumer confidence and slow GDP growth, Iannone told investors on a call Wednesday.

Garcia, the chief product officer, said the company is working to help its sellers understand the changing tariff situation. "Yes, there's an impact," Garcia said. "What we're trying to do is just be an advocate for our sellers and help them navigate this really complex, dynamic situation."

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

February 27, 2025 11:18 ET (16:18 GMT)

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