Amazon CEO: 'Trump tariffs are starting to be reflected in prices of some goods' [Stock+]
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Summary
- Andy Jassy, CEO of Amazon, said President Donald Trump’s sweeping tariff policy is gradually beginning to be reflected in the prices of some goods.
- He explained that as inventory pre-purchased by Amazon and third-party sellers was largely depleted last fall, some sellers have begun passing increased costs on through prices, making the impact increasingly evident.
- Jassy said Amazon is trying to keep prices as low as possible for consumers, but given retail’s low operating margins, some price increases are inevitable, and consumers are showing a tendency to shift toward cheaper and discounted items.
Andy Jassy, CEO of Amazon, said President Donald Trump’s sweeping tariff policy is gradually beginning to be reflected in the prices of some goods.
In an interview with CNBC at the World Economic Forum (WEF) in Davos, Switzerland, on the 20th (local time), Jassy said the cost increases caused by tariffs are “slowly seeping into” prices.
According to him, Amazon and many third-party sellers tried to curb price increases by buying inventory in advance to prepare for the tariffs, but most of that inventory was depleted last fall. Since then, some sellers appear to have begun passing higher costs on through prices.
“Some sellers are passing the increased tariff-related costs on to consumers, while others are absorbing them to maintain demand, or taking an approach somewhere in between,” Jassy said, adding that “the impact is becoming increasingly clear.”
The remarks mark a shift from his comments last year, when he said that even after President Trump announced broad tariffs, “prices didn’t rise noticeably.” He had also said in April last year that some sellers would likely have no choice but to pass the tariff burden on to consumers.
Amazon sellers previously told CNBC that due to higher import costs from tariffs, they have already raised prices on some items or are considering doing so. A major retail trade association likewise warned in August last year that trade tensions could weigh on companies’ inventory ordering plans, leading to higher prices, reduced product supply, and job cuts.
Jassy stressed that Amazon is working to keep prices as low as possible for consumers, but said some price increases are inevitable. “Retail is an industry with operating margins only in the mid-single digits,” he said, adding, “if costs rise 10%, there isn’t much room to absorb that.”
Meanwhile, he said that despite the tariffs, consumers overall are maintaining resilient spending trends. He added that while some consumers are shifting toward cheaper products or looking for discounted items, there are also more cases of people postponing purchases of high-priced discretionary goods.
New York=Correspondent Park Shin-young nyusos@hankyung.com
