Amazon CEO Andy Jassy said consumers are starting to feel higher prices as sellers try to absorb additional costs from President Donald Trump’s tariffs.
Jassy told CNBC that Amazon and many of its third-party sellers stocked up on inventory ahead of the tariffs to keep prices down, but most of that supply dried up last fall.
“So some of the tariffs are starting to trickle down to some prices and some products, and some sellers are deciding to pass that higher cost on to consumers in the form of higher prices, some are deciding to absorb it to stimulate demand, and some are doing things in between,” Jassy said. “I think we’re starting to feel the impact more.”
Amazon’s comments signal a change from last year, when Jassy said prices had not increased after President Trump announced tariffs.
Jassy said Tuesday that Amazon tries to keep prices low, but that raising prices may be inevitable in some cases.
“Retail, as you know, is a mid-single-digit operating margin business, so if your labor costs go up 10%, at some point there’s not a lot of places to absorb that,” Jassy said. “You don’t have infinite options.”
Despite the tariffs, consumers have been “pretty resilient,” Jassy said, noting that some shoppers have shifted to cheaper items and bargain hunting, while others have put off premium discretionary purchases.
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