According to CEO Andy Jassy, the Amazon tariff is pushing product prices, forcing some sellers to raise costs while others absorb the impact to maintain demand.
Sellers on Amazon are feeling the pinch as the Amazon tariff starts to push product prices higher, CEO Andy Jassy says. Many tried to stock up early to avoid the impact, but most of that inventory has already run out.
The rising costs are forcing sellers to make tough decisions between passing higher prices to consumers or absorbing the costs to maintain demand. The Amazon CEO says the company is trying to keep prices as low as possible, but the limits of retail margins leave few options.
Amazon Tariff Starts to Affect Product Prices, CEO Says
In a recent interview with CNBC, Amazon CEO Andy Jassy said the Amazon tariff has begun to “creep” into the prices of some products as sellers weigh how to absorb the added costs. Many third-party merchants and Amazon itself pre-purchased inventory to stay ahead of the tariffs, but most of that stock ran out last fall.
The Amazon price increase is uneven, with some sellers passing higher costs to consumers and others absorbing the expenses to maintain demand. Jassy noted that retail margins are limited, leaving sellers with few options, and consumers have responded by trading down to lower-priced items or postponing discretionary purchases.
Key points reported by Amazon CEO include:
- Pre-purchased inventory to offset tariffs has largely depleted.
- Sellers are making mixed decisions between passing costs to buyers or absorbing them.
- Amazon continues to try to keep prices as low as possible despite tariff pressures.
The comments highlight ongoing cost pressures in the marketplace, as noted by Amazon agencies monitoring the impact on third-party sellers.
Sellers Face Rising Costs as Amazon Tariff Pressures Mount
Amazon.com is starting to see an uptick in product prices as sellers respond to cost pressures from the Amazon tariff. The company and many third-party merchants pre-purchased inventory early last year to get ahead of tariffs, but most of that stock ran out by the fall.
The Amazon price increase is uneven, with some sellers passing higher costs to consumers while others are absorbing expenses to maintain demand. Consumers have remained largely resilient, but some are trading down to lower-priced items or holding off on discretionary purchases.
Amazon has said expanding product categories and speeding up delivery timelines have helped shield demand from tariffs, but cost pressures from the Amazon tariff are now starting to appear in Amazon product prices. Sellers are adjusting their strategies, and the effects of the tariff are expected to influence pricing decisions into 2026.
Tariffs starting to bump up product prices, Amazon CEO tells CNBC By Reuters
Amazon CEO Changes Stance as Amazon Tariff Drives Prices Higher
The Amazon tariff is beginning to show in product prices on Amazon, with consumers now seeing the impact of inventory pre-purchased to offset earlier cost increases. According to Jacqueline Munis from Fortune, the CEO noted that much of that stock ran out by the fall, resulting in a visible price increase across certain items.
This statement marks a change from earlier in 2025, when the CEO said it was too soon to tell how tariffs would affect prices and that their impact on retail costs had been misreported. The shift reflects new pressures as sellers now weigh whether to pass higher costs to consumers or absorb them to maintain demand.
Tariffs have raised $200 billion for the U.S. Treasury, and studies indicate American consumers are absorbing 96% of the added costs. Some merchants who raised prices in 2025 reported major sales declines after Amazon removed the “Add to Cart” or “Buy Now” buttons on listings, increasing pressure on sellers adjusting to higher import costs.
Retail operates on mid-single-digit margins, leaving sellers few options to absorb cost increases without affecting product prices on Amazon. The CEO emphasized that the company is working with distributors and its two million sellers to keep prices as low as possible, but the impact of the Amazon tariff is becoming increasingly evident.
