Amazon CEO Andy Jassy says tariffs are starting to drive up product prices

Amazon CEO Andy Jassy Warns of Price Increases Due to Trump’s Tariffs

According to Amazon CEO Andy Jassy, consumers are starting to feel the impact of President Donald Trump’s tariffs as sellers try to offset additional costs by raising prices. Jassy revealed in an interview with CNBC that both Amazon and its third-party sellers had stocked up on inventory before the tariffs were imposed to keep prices stable, but supplies have since dwindled.

Jassy explained, “You start to see some of the tariffs affecting prices of items, with some sellers passing on the higher costs to consumers, while others are absorbing the costs to stimulate demand. Some are finding a middle ground.” This shift marks a departure from last year when Jassy had stated that prices had not increased following the tariff announcements.

Despite Amazon’s efforts to maintain low prices, Jassy acknowledged that price hikes may become inevitable in certain cases. He emphasized, “Given that retail operates on a mid-single digit operating margin, a 10% increase in costs leaves limited options to absorb the impact.”

However, Jassy noted that consumers have shown resilience in the face of tariffs by adjusting their purchasing behavior. Some are opting for more affordable alternatives and seeking out discounts, while others are postponing luxury purchases.