Amazon faces tariff lawsuit and governance scrutiny over AI oversight while expanding Amazon Now 30-minute delivery service

In mid-May 2026, a proposed class-action lawsuit was filed in federal court in Seattle alleging Amazon unlawfully passed on later-invalidated IEEPA tariffs to customers on imported goods bought between February 2025 and February 2026; separately, investor advocates urged votes against four Amazon directors over exclusion of shareholder proposals on AI governance.

Amazon is expanding its Amazon Now 30-minute delivery service across major US cities while deepening AWS partnerships for AI-enabled cloud and logistics, creating tension between growth initiatives and mounting legal and governance scrutiny over pricing and consumer treatment.

For investors, the tariff lawsuit and AI governance pushback represent legal and reputational overhangs, while Amazon Now's rapid rollout sits at the intersection of logistics efficiency gains and the risk that rising labor, infrastructure, and automation costs could compress margins.