Amazon CEO Jassy says Trump's tariffs have started to 'creep' into prices

In a recent discussion, Amazon CEO Andy Jassy highlighted the growing impact of President Donald Trump's tariffs on product prices. He noted that these tariffs are beginning to influence the costs of various items as sellers evaluate their options for managing increased expenses. At the World Economic Forum in Davos, Switzerland, Jassy explained that Amazon, along with many third-party sellers, had initially stocked up on inventory to mitigate the effects of tariffs and maintain lower prices for customers. However, he pointed out that much of that inventory was depleted by the previous fall. As a result, Jassy indicated that consumers are starting to see the effects of tariffs reflected in the prices of some products. He elaborated that sellers are making different choices regarding how to handle these increased costs: some are passing them on to consumers, while others are choosing to absorb the costs to stimulate demand, with many adopting a mixed approach. This marks a significant change from last year when Jassy had reported that Amazon had not experienced noticeable price increases following the tariff announcements. He had previously warned that some sellers might eventually need to raise prices due to the inability to absorb the higher costs entirely. Jassy reiterated that while Amazon strives to keep prices competitive, unavoidable price hikes may be necessary as the retail industry operates on tight margins. "With retail margins typically in the mid-single digits, if costs rise by 10%, options for absorbing those increases are limited," Jassy stated, emphasizing the financial pressures faced by sellers in the current economic climate.