Amazon CEO says Trump tariffs are driving prices up
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Amazon CEO Andy Jassy acknowledged that prices of products on the company's platform are increasing because of President Trump's tariffs.
Why it matters: The comments break from Amazon's earlier insistence that tariffs weren't materially affecting prices — and could add fuel to political scrutiny over rising consumer costs.
Driving the news: Jassy said on the sidelines of the World Economic Forum in Davos that "you start to see some of the tariffs creep into some of the prices of some of the items" on Amazon, pointing specifically to third-party sellers.
- "Some sellers are deciding that they're passing on those higher costs to consumers," Jassy told CNBC in an interview Tuesday. "Some are deciding that they'll absorb it to drive demand and some are doing something in between."
Flashback: In July, Jassy said tariffs' effect on retail prices and consumption had been "misreported," while warning that uncertainty would grow once pre-tariff inventory ran out.
- Amazon clashed with the Trump White House in April after reports it was considering adding a tariff fee to U.S. sales — prompting the administration to call the idea a "hostile and political act." Amazon later said the proposal was never approved and would not proceed.
Zoom in: Jassy said Tuesday that Amazon is trying to work with its distribution and selling partners to keep prices "as low as possible" for consumers.
- But he acknowledged that "you don't have endless options," noting mid-single-digit operating margins for retail.
- "If people's costs go up by 10%, there aren't a lot of places to absorb it," he said.
The bottom line: When Amazon says prices are rising, it carries outsized weight — signaling that even the world's largest e-commerce platform is running out of room to absorb tariff costs.
