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

Amazon's CEO Andy Jassy has highlighted a troubling trend for consumers as price increases become more apparent. During a conversation with CNBC, he explained that sellers are starting to pass along the higher costs associated with tariffs imposed by former President Donald Trump. Jassy noted that both Amazon and its third-party sellers had initially stocked up on inventory prior to the tariff announcements, which helped keep prices stable for a while. However, much of that stock has now been depleted. As a result, Jassy mentioned that the effects of the tariffs are beginning to manifest in rising prices for various products. "You start to see some of the tariffs creep into some of the prices... some sellers are deciding to pass on those higher costs to consumers, while others are absorbing them to maintain demand," he stated. This marks a notable change from last year when he claimed that there had been no noticeable price hikes following the tariff announcements. While Amazon is making efforts to minimize price increases, Jassy acknowledged that some adjustments may be unavoidable. He explained, "Retail operates on a mid-single digit margin, so when costs rise by 10%, there are limited options for absorbing those increases." Despite the challenges posed by tariffs, Jassy expressed confidence in consumer resilience, indicating that shoppers are adapting by seeking more affordable options and delaying purchases of higher-end items.