Amazon CEO admits Trump-era tariffs leading to higher prices

Jassy admits inventory built up as a buffer against additional costs has been exhausted

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Andy Jassy. Image: Amazon

Andy Jassy, CEO of Amazon, has acknowledged that US President Donald Trump’s import tariffs are starting to affect consumer prices, CNBC reports. He explained that Amazon and its third‑party sellers initially built up inventory to cushion the impact of the tariffs. However, those advance‑purchased stocks were depleted last autumn, leading to a gradual price increase for some products.

Jassy said that sellers are responding to the higher costs in different ways. Some have chosen to pass the higher costs on to consumers through price rises, while others are absorbing the costs themselves in order to sustain demand. He noted that some sellers are also taking a mixed approach.

This statement marks a shift from the position Jassy took last year, when he claimed that Amazon had not observed significant price increases following the introduction of Trump’s tariffs. In April 2019, Jassy had predicted that some sellers would be forced to raise their prices because of limited profit margins.

Reports from Amazon sellers had previously indicated that they were considering, or had already implemented, price increases for certain items as a result of higher import costs due to the tariffs. Although Amazon aims to maintain competitive prices for its customers, Jassy acknowledged that price adjustments may in some cases be unavoidable.

He pointed to the tight operating margins in retail and stressed that a 10% increase in costs leaves little room for absorption. Jassy concluded that companies have limited options when they are confronted with rising costs.

Business AM

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