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Amazon CEO Says Tariffs Are Now Creeping Into Prices

With stockpiled goods exhausted, evidence points to most tariff costs landing on U.S. consumers.

Overview

  • Andy Jassy said inventory Amazon and third-party sellers pre-bought in early 2025 ran out in the fall, exposing more listings to tariff-driven increases.
  • In a CNBC interview at Davos, he reported that some sellers are passing higher import costs to shoppers, others are absorbing them, and some are splitting the impact.
  • Jassy described consumers as resilient but more price sensitive, with shoppers trading down and hesitating on higher-priced discretionary items.
  • Trump’s tariff program, including last August’s closure of the de minimis duty-free entry for low-value goods, has raised import costs across many consumer categories.
  • A Kiel Institute study estimates about 96% of tariff costs are borne by U.S. consumers versus 4% by foreign exporters, and Amazon shares fell roughly 2%–3% after the comments.