Overview
- Amazon says most inventory stockpiled ahead of the tariffs was exhausted in the fall of 2025, exposing more products to higher import costs.
- Third‑party sellers are taking mixed approaches, with some passing through tariff costs and others absorbing part of them as thin margins constrain options.
- Consumers remain active but are trading down to cheaper items and hesitating on higher‑priced discretionary purchases, according to Andy Jassy.
- Research from the Kiel Institute indicates roughly 96% of tariff costs are borne by U.S. consumers, with foreign exporters absorbing about 4%.
- The legality of the tariffs is being tested at the Supreme Court over the administration’s use of emergency authority, and an adverse ruling could unwind duties or trigger refunds.