As Americans’ wallets begin to feel the pinch from tariffs, Amazon CEO Andy Jassy said the bill is expiring soon.
“You’re starting to see some of the tariffs trickle into some of the prices,” Jassy said in a note. interview Interviewed by CNBC at the World Economic Forum meeting in Davos, Switzerland. “Some sellers are deciding to pass on higher costs to consumers in the form of higher prices; some are deciding to absorb the costs to drive demand; and some are taking steps somewhere in between.”
Jassy’s comments are a reversal from July, when he explain The impact of tariffs on retail prices and consumption has been “misreported” and it is too early to tell how the tariffs will affect prices. The statements came before President Donald Trump imposed “reciprocal tariffs” on dozens of countries in August.
May, Jassy encourage Sellers are hoarding inventory in anticipation of tariffs and say Amazon will do the same to drive down prices. Most of the supply was used up by the fall, and now consumers are seeing higher prices, he said.
Tariffs raised $200 billion in revenue for the U.S. Treasury, but the latest study found that U.S. consumers are absorbing 96% of the cost of tariffs.
change of tone
Jassy has previously said that tariffs may not be the worst-case scenario for all Amazon sellers. “I think when you have greater diversity like we do, we have a better chance of getting some of these sellers to decide that they’re going to capture (market) share and they’re not going to pass on all or any of the tariffs to customers,” Jassy explain During Amazon’s first-quarter earnings call last year.
The CEO said Amazon is working with distributors and its 2 million sellers to provide customers with the “lowest possible prices.”
wealth Before report Some merchants on the platform said they were penalized after raising prices in 2025 and saw sales drop significantly. Sellers explained that Amazon has removed the “Add to Cart” or “Buy Now” buttons on its product pages, which most shoppers use to make purchases.
In the past, Amazon has suppressed easily accessible buy buttons to prevent price gouging or force brands to lower prices to match pricing on its own site or those of competitors. This tactic is the subject of an ongoing antitrust investigation by the Federal Trade Commission case Fight Amazon.
Anthony Preston, owner of Wall Decals, a wall decal brand sold on Amazon, previously said wealth He was punished after raising prices on the platform by about $2, with average increases ranging from 5% to 10%. Preston sources products from China, and with tariffs added, his costs increase by 25%.
“(The sellers) are trying to keep their heads above water,” Preston said.
Asked about new strategies to keep prices down, Jassy acknowledged there are fewer options than before.
“Retail is an industry with mid-single-digit operating margins. If people’s costs go up 10%, there’s not a lot of places to absorb it,” he said. “We will make every effort to work with our sales partners to provide consumers with the lowest possible prices, but you don’t have endless choices.”