If your next Amazon purchase appears more expensive, President Donald Trump’s sweeping tariffs bear some responsibility, Amazon CEO Andy Jassy stated on Tuesday.
Like numerous retailers, Amazon and its extensive network of third-party sellers had built up inventory before Trump’s tariffs took effect last spring. However, that stockpile depleted by the autumn, Jassy mentioned in an interview with CNBC on the sidelines of the World Economic Forum in Davos, Switzerland.
“So you start seeing some of the tariffs bleeding into the prices, on some items,” he commented. “Some sellers choose to pass those higher costs onto consumers as higher prices, some choose to absorb them to encourage demand, and some do something in between.”
These remarks contrast sharply with last June, when Jassy told CNBC that the company hadn’t observed a “meaningful price increase.” This followed Amazon drawing direct ire from Trump and members of his administration after reports indicated plans for e-commerce sites to show how tariffs impacted pricing.
After Trump spoke with Amazon founder Jeff Bezos, a company representative informed CNN that the move “was never considered for core Amazon.” The company clarified that it was only being explored for specific items on its budget site, Haul, which sells goods under $30.
Yet, Jassy said on Tuesday, “We’ll do what we can to work with our selling partners to try to bring down prices for consumers, but you don’t have infinite options.”
However, in a statement, the company told CNN that overall price levels hadn’t shifted more than anticipated. “While we do see price increases from some sellers and brands, overall, prices on items at Amazon have not changed beyond normal fluctuations,” an Amazon spokesperson stated.
And the White House insisted that this tariff blueprint is being paid for by foreign exports.
“The average tariff imposed by America has increased nearly tenfold under President Trump, and inflation continues to move down from Biden-era highs,” White House Press Secretary Karine Jean-Pierre said in a statement.
“The administration has consistently argued that foreign exporters who rely on access to the American economy—the single largest and best consumer market in the world—will ultimately pay the cost of the tariffs, and that is what is happening,” she added.
Amazon is not the sole retailer warning about price hikes due to tariffs. Walmart, Target, Home Depot, and many other companies have publicly indicated that the tariffs are leading to more costly merchandise. And while overall consumer inflation was moderate last year, many firms surveyed by the Federal Reserve in its latest “Beige Book” anecdotal collection cautioned that they are planning more substantial price increases this year.
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