Amazon's CEO Warns of Tariffs Creeping into Prices, Consumers Start to Feel the Pinch
Amazon's CEO Andy Jassy has revealed that tariffs are starting to creep into prices, a trend he says is less than a year old and will have a profound impact on consumers. Just over a year since President Donald Trump implemented sweeping fees on imported goods, Amazon has prebought inventory in early 2025 with the intention of keeping prices low for its customers.
However, Jassy says that this inventory "has run out," which means that some tariffs are starting to be passed on to consumers. He attributes this trend to foreign exporters absorbing only a fraction of the cost of tariffs, while American consumers bear the brunt of the remaining 96 percent.
"We're seeing some sellers decide to pass those higher costs on to consumers in the form of higher prices," Jassy said during an interview with CNBC. "Some are deciding to absorb it to drive demand." With the US government having closed the "de minimis" loophole, which allowed low-cost goods to enter duty-free, Amazon and third-party sellers are struggling to find ways to mitigate additional price increases.
The impact of tariffs on consumers is becoming increasingly apparent, with prices rising as a result. As Jassy noted, if people's costs increase by 10 percent, there isn't much room for absorption, so Amazon will do everything it can to keep prices low for its customers – but there are limited options available.
The study by the Kiel Institute for the World Economy found that foreign exporters absorb just 4 percent of the cost of tariffs, while American consumers bear the remaining 96 percent. This stark reality is a worrying sign for consumers, who will likely continue to feel the pinch as prices rise.
Amazon's CEO Andy Jassy has revealed that tariffs are starting to creep into prices, a trend he says is less than a year old and will have a profound impact on consumers. Just over a year since President Donald Trump implemented sweeping fees on imported goods, Amazon has prebought inventory in early 2025 with the intention of keeping prices low for its customers.
However, Jassy says that this inventory "has run out," which means that some tariffs are starting to be passed on to consumers. He attributes this trend to foreign exporters absorbing only a fraction of the cost of tariffs, while American consumers bear the brunt of the remaining 96 percent.
"We're seeing some sellers decide to pass those higher costs on to consumers in the form of higher prices," Jassy said during an interview with CNBC. "Some are deciding to absorb it to drive demand." With the US government having closed the "de minimis" loophole, which allowed low-cost goods to enter duty-free, Amazon and third-party sellers are struggling to find ways to mitigate additional price increases.
The impact of tariffs on consumers is becoming increasingly apparent, with prices rising as a result. As Jassy noted, if people's costs increase by 10 percent, there isn't much room for absorption, so Amazon will do everything it can to keep prices low for its customers – but there are limited options available.
The study by the Kiel Institute for the World Economy found that foreign exporters absorb just 4 percent of the cost of tariffs, while American consumers bear the remaining 96 percent. This stark reality is a worrying sign for consumers, who will likely continue to feel the pinch as prices rise.
I'm thinking, if 96% of tariff costs are getting passed on to US consumers, that's just insane 
. Like, what even is going on with global trade? 
Amazon's trying to keep prices low for us, but it seems like foreign exporters are just taking advantage of the system 
. The fact that only 4% of tariffs are being absorbed by exporters is wild - can't they do better than that? 
And what about Amazon's inventory? Like, how long can they keep buying and holding onto stuff without it affecting prices? 
I'm seeing more price hikes on everyday items every week... this is getting scary! 
4% of tariffs being absorbed by foreign exporters is super sus, it's like they're basically passing on all the blame to us. And now we gotta deal with prices rising? 
That's not cool at all...
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. The fact that foreign exporters only absorb 4% of the cost while American consumers take the rest is pretty concerning. It's like, what can you do when someone's gotta pay for a bunch of extra fees? And I get why Amazon wants to keep prices low, but it's not like they're in control of the tariffs, you know? It's this big web of issues where everyone's getting squeezed 
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i swear, amazon is more interested in making profits than people 
I was at this huge music festival last weekend and saw so many people complaining about how much their favorite band tickets went up... I'm like, yeah, I get it, tariffs are real 
... Amazon's trying to keep prices low for customers, but it's hard when most sellers are just passing on the costs 
before I believe it. It sounds like a convenient excuse for why prices are rising and not just a coincidence 
. The fact that foreign exporters absorb most of the cost doesn't necessarily mean Amazon can't find ways to keep costs low for customers 
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. What's really worrying me is that this study says foreign exporters only absorb 4% of the tariff costs, while we US consumers are left with 96%! It's just not fair 
. I mean, I get it, businesses need to make a profit, but at what cost? When my favorite gadget just went up by 20% in one go, I was like "what's going on?" 
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. Can't we find a way to make it work where everyone benefits? 
10 percent increase in price & u gotta absorb it? thats not a lot of wiggle room for amazon or any other seller 
I don't get why foreign exporters can just absorb that much of the cost... isn't it basic math? It's like they're taking advantage of us and getting away with it...