Hajra Naz
Amazon CEO Andy Jassy says shoppers are beginning to notice higher prices as sellers pass along the added costs from President Donald Trump’s tariffs.
Speaking with CNBC, Jassy explained that Amazon and many third-party sellers had stocked up on inventory ahead of the tariffs to shield customers from price increases. However, much of that stock ran out last fall, leaving sellers to decide how to handle rising costs.
“You start to see some of the tariffs creep into prices,” Jassy said. “Some sellers are passing the higher costs to consumers, some are absorbing them to drive demand, and some are doing a mix. You’re starting to see more of that impact.”
A Shift from Last Year
This marks a change from last year, when Jassy said prices had remained stable despite the announcement of tariffs. Now, while Amazon continues to work to keep prices low, Jassy acknowledged that price increases may be unavoidable in some cases.
“Retail operates on mid-single-digit margins,” he said. “If costs go up by 10%, there aren’t many places to absorb it. You don’t have endless options.”
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Consumers Adapting to Price Changes
Despite rising costs, Jassy noted that consumers are showing resilience. Some shoppers are moving toward cheaper alternatives and bargain hunting, while others are delaying higher-end, discretionary purchases.
