Amazon CEO Andy Jassy Highlights Tariff-Induced Price Increases
Amazon’s Chief Executive Officer, Andy Jassy, has recently addressed the impact of tariffs on consumer prices, noting a discernible uptick as sellers adjust to the additional costs imposed by President Donald Trump’s trade policies.
In a conversation with CNBC, Jassy explained that both Amazon and numerous third-party vendors had proactively increased their inventory prior to the implementation of tariffs to maintain stable pricing. However, this preemptive stockpile was largely depleted by the previous autumn.
Consequently, we’re beginning to observe the influence of tariffs on certain product prices, Jassy remarked. Some sellers are choosing to transfer these elevated costs to consumers through higher prices, others are absorbing the expenses to sustain demand, and some are adopting a hybrid approach. I believe this impact is becoming more evident.
This statement marks a departure from Jassy’s earlier position last year, when he indicated that prices had remained unaffected following the announcement of tariffs.
On Tuesday, Jassy acknowledged that while Amazon strives to keep prices low, some price increases may be unavoidable.
Given that retail operates on mid-single-digit operating margins, if costs escalate by 10%, there are limited avenues to absorb such increases, he explained. Options are not limitless.
Despite these challenges, Jassy observed that consumers are demonstrating resilience. He noted that some shoppers are opting for more affordable alternatives and seeking bargains, while others are postponing discretionary purchases of premium items.
