Friday, August 1, 2025

Amazon Warns: Tariff Burden Could Shift to Consumers

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Amazon CEO Andy Jassy addressed the Trump administration’s tariff policies on trading partners, stating that the current situation is highly fluid, so it is difficult to predict what will happen.

In a recent interview with U.S. financial news network CNBC, Jassy explained that Amazon is closely monitoring all factors that could potentially impact consumers and customers.

Following U.S. President Donald Trump’s announcement of reciprocal tariffs last week, Jassy noted that they have not observed any significant changes in consumer behavior. It’s still too early to observe any notable changes.

He mentioned that while some products have seen preemptive buying, it’s hard to determine whether this is a temporary data anomaly or the beginning of a lasting trend, given that only a few days have passed.

To mitigate the impact of tariffs, Jassy revealed that Amazon has proactively stockpiled inventory for certain products. He emphasized that they are committed to doing everything they can to maintain low prices.

However, he also acknowledged the possibility of price hikes, noting that some online sellers might pass the tariff costs on to consumers.

Amazon’s third-party marketplace comprises millions of sellers, accounting for approximately 60% of all products sold on the platform. Many of these sellers are based in China or source their products from the region.

On Wednesday, Trump announced a 90-day delay on reciprocal tariffs for most countries but increased tariffs specifically on China.

Jassy concluded by stating that they have communicated their concerns about the tariff policies to the government and they are aware of the issues.

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