Amazon shoppers may soon see higher prices, as CEO Andy Jassy confirmed the impact of rising global tariffs on the e-commerce giant. Speaking to CNBC on Thursday, Jassy explained that many of the company’s third-party sellers are facing increased costs, which they’re likely to pass on to consumers.
“If you’re in a country where margins are already tight, you don’t have much room to absorb added costs,” Jassy noted, referencing the growing strain of international trade tensions.
Although President Donald Trump recently paused a batch of so-called “reciprocal tariffs” for 90 days — tariffs that ranged from 11% to 50% on dozens of countries — he continues to escalate the trade war with China. Tariffs on Chinese imports have now surged to 125%, while China hit back with an 84% tariff on U.S. goods starting Thursday.
Despite these developments, Jassy emphasized that Amazon is working hard to keep prices low. The company has taken steps like buying inventory in advance and renegotiating deals with sellers to help offset rising costs.
So far, he added, there hasn’t been a major shift in how customers shop, though Amazon has noticed some consumers buying ahead of expected price increases and continuing cautious spending patterns shaped by inflation.
“Shoppers are more price-sensitive than ever — they’re trading down and hunting for bargains,” Jassy said.
This cautious optimism contrasts with Walmart’s approach. The retail giant recently withdrew its financial outlook for the quarter due to tariff uncertainties, although it still expects up to 4% sales growth and reaffirmed its full-year projections.
Amazon shares fell 3% at market open, part of a broader downturn across the markets.
