Amazon CEO Warns of Tariff Impact on Pricing

Amazon CEO Andy Jassy Discusses Impact of Tariffs on Consumers

According to Amazon CEO Andy Jassy, consumers are beginning to feel the effects of tariffs less than a year after President Donald Trump imposed significant fees on various imported goods. In an interview with CNBC, Jassy mentioned that the inventory Amazon and third-party sellers purchased in early 2025 to maintain low prices has now been depleted, leading to an increase in prices due to the tariffs.

Recent research from the Kiel Institute for the World Economy revealed that only 4 percent of tariff costs are absorbed by foreign exporters, with the remaining 96 percent passed on to American consumers. Jassy noted that some sellers are choosing to pass on these higher costs to consumers through increased prices, while others are absorbing the costs to stimulate demand.

In addition to the tariffs, President Trump also issued an executive order to close the “de minimis” loophole that allowed low-cost goods to enter the US duty-free. This action took effect last August, and Jassy stated that there are limited options available to Amazon and third-party sellers to prevent further price hikes.

Jassy emphasized the challenges of absorbing a 10 percent increase in costs, stating that efforts will be made to collaborate with selling partners to keep prices as competitive as possible for consumers. However, he acknowledged that there are limitations to how much prices can be lowered given the current circumstances.