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

Amazon CEO Andy Jassy has said that tariffs are beginning to push up the prices consumers pay, as sellers respond to higher costs linked to President Donald Trump’s trade policies.

Speaking to CNBC, Jassy explained that Amazon and many of its third-party sellers had built up inventory in advance of the tariffs to prevent price increases. However, he noted that most of those pre-tariff supplies were exhausted by last fall.

“As that inventory runs through, you start to see some of the tariffs show up in the pricing of certain products,” Jassy said. “Some sellers are choosing to pass those higher costs on to customers through higher prices, some are absorbing the costs to help stimulate demand, and others are taking a middle-ground approach. I think we’re beginning to see more of that effect now.”

Amazon’s remarks reflect a change from last year, when Jassy said prices had largely remained stable after Trump first announced the tariffs.

On Tuesday, Jassy said Amazon is continuing to work to keep prices as low as possible, but acknowledged that increases may be difficult to avoid in some cases.

“There’s a limit to what can be absorbed,” he said. “Retail is a business with mid-single-digit operating margins, so if costs rise by 10%, there just aren’t many places to offset that. You don’t have unlimited flexibility.”

Even so, Jassy said consumers have remained “pretty resilient” so far. He noted that some shoppers are adjusting by opting for lower-priced products and seeking out deals, while others are delaying purchases of higher-end discretionary items.