Amazon CEO says Trump tariffs are beginning to push up product prices

Amazon chief executive Andy Jassy said consumers are beginning to face higher prices as sellers respond to rising costs stemming from tariffs imposed by US President Donald Trump, according to a CNBC report.

Speaking to CNBC, Jassy said Amazon and many of its third-party sellers had built up inventory ahead of the tariffs in an effort to shield customers from price increases, but much of that stockpile had been exhausted by last autumn.

He informed that tariff-related costs are now starting to appear in prices across certain items, as sellers take different approaches to managing the impact. Some sellers are passing higher costs on to consumers through price increases, others are choosing to absorb the costs to maintain demand, while some are adopting a middle-ground strategy, he said, adding that the effects are becoming increasingly visible.

The comments mark a shift from last year, when Jassy had said prices had not increased following the announcement of the tariffs.

Jassy said on Tuesday that Amazon continues to try to keep prices low for customers, but acknowledged that price rises may be unavoidable in some cases. He stated that retail operates on mid-single-digit margins and that when costs rise sharply, there are limited options available to absorb the impact without raising prices.

Despite the pressures from tariffs, Jassy said consumers remain relatively resilient. He noted that some shoppers are trading down to cheaper products and actively seeking bargains, while others are delaying discretionary spending on more premium items.