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

In Brief

Amazon CEO Andy Jassy says consumers are opening to spot higher prices arsenic sellers look to sorb added costs from President Donald Trump’s tariffs.

Jassy told CNBC that Amazon and galore of its third-party sellers stocked up connected inventory up of the tariffs to support prices low, but that astir of that proviso tally retired past fall.

“So you commencement to spot immoderate of the tariffs creep into immoderate of the prices, immoderate of the items, and you spot immoderate sellers are deciding that they’re passing connected those higher costs to consumers successful the signifier of higher prices, immoderate are deciding that they’ll sorb it to thrust request and immoderate are doing thing successful between,” Jassy said. “I deliberation you’re starting to spot much of that impact.”

Amazon’s remark signals a displacement from past year, erstwhile Jassy had said prices had not risen aft Trump announced the tariffs.

Jassy said connected Tuesday that portion Amazon is trying to support prices low, terms hikes whitethorn beryllium unavoidable successful immoderate instances.

“At a definite point, due to the fact that retail is, arsenic you know, a mid-single digit operating borderline business, if people’s costs spell up by 10%, determination aren’t a batch of places to sorb it,” Jassy said. “You don’t person endless options.”

Despite the tariffs, consumers are “pretty resilient,” Jassy said, noting that immoderate shoppers are shifting to cheaper items and bargain hunting, portion others are putting disconnected premium discretionary purchases.

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