Amazon CEO Andy Jassy said President Donald Trump's sweeping tariffs are starting to be reflected in the price of some items, as sellers weigh how to absorb the shock of the added costs. From a report: Amazon and many of its third-party merchants pre-purchased inventory to try to get ahead of the tariffs and keep prices low for customers, but most of that supply ran out last fall, Jassy said in a Tuesday interview with CNBC's Becky Quick at the World Economic Forum in Davos, Switzerland.
"So you start to see some of the tariffs creep into some of the prices, some of the items, and you see some sellers are deciding that they're passing on those higher costs to consumers in the form of higher prices, some are deciding that they'll absorb it to drive demand and some are doing something in between," Jassy said. "I think you're starting to see more of that impact." The comments are a notable shift from last year, when Jassy said Amazon hadn't seen "prices appreciably go up" a few months after Trump announced wide-ranging tariffs. Further reading: Americans Are the Ones Paying for Tariffs, Study Finds: Americans, not foreigners, are bearing almost the entire cost of U.S. tariffs, according to new research that contradicts a key claim by President Trump and suggests he might have a weaker hand in a reemerging trade war with Europe.
[...] The new research, published Monday by the Kiel Institute for the World Economy, a well-regarded German think tank, suggests that the impact of tariffs is likely to show up over time in the form of higher U.S. consumer prices. [...] By analyzing $4 trillion of shipments between January 2024 and November 2025, the Kiel Institute researchers found that foreign exporters absorbed only about 4% of the burden of last year's U.S. tariff increases by lowering their prices, while American consumers and importers absorbed 96%.
"So you start to see some of the tariffs creep into some of the prices, some of the items, and you see some sellers are deciding that they're passing on those higher costs to consumers in the form of higher prices, some are deciding that they'll absorb it to drive demand and some are doing something in between," Jassy said. "I think you're starting to see more of that impact." The comments are a notable shift from last year, when Jassy said Amazon hadn't seen "prices appreciably go up" a few months after Trump announced wide-ranging tariffs. Further reading: Americans Are the Ones Paying for Tariffs, Study Finds: Americans, not foreigners, are bearing almost the entire cost of U.S. tariffs, according to new research that contradicts a key claim by President Trump and suggests he might have a weaker hand in a reemerging trade war with Europe.
[...] The new research, published Monday by the Kiel Institute for the World Economy, a well-regarded German think tank, suggests that the impact of tariffs is likely to show up over time in the form of higher U.S. consumer prices. [...] By analyzing $4 trillion of shipments between January 2024 and November 2025, the Kiel Institute researchers found that foreign exporters absorbed only about 4% of the burden of last year's U.S. tariff increases by lowering their prices, while American consumers and importers absorbed 96%.
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