Amazon CEO Andy Jassy says tariffs are starting to raise product prices

Amazon CEO Andy Jassy said consumers are starting to see higher prices as sellers look to absorb the additional costs from President Donald Trump’s tariffs.

Amazon and many third-party sellers stocked up on inventory before the tariffs to keep prices low, but most of that supply ran out last fall, Jassy told CNBC.

“So you start to see some tariffs creep into some prices, some items, and you see some sellers decide that they’re passing these higher costs on to consumers in the form of higher prices, some decide that they’re going to absorb them to increase demand, and some do something in between,” Jassy said. “I think you’re starting to see more of that effect.”

Amazon’s comment marks a shift from last year, when Jassy said prices did not rise after Trump announced the tariffs.

While Amazon tries to keep prices low, higher prices may be inevitable in some cases, Jassy said Tuesday.

“At a certain point, since retail, you know, is a mid-single-digit operating margin business, if people costs go up 10%, there won’t be a lot of places to absorb them,” Jassy said. “You don’t have endless options.”

Despite the tariffs, consumers are “very resilient,” Jassy said, noting that some shoppers are turning to cheaper items and hunting for bargains, while others are putting off premium discretionary purchases.