Tariffs starting to bump up product prices, Amazon CEO tells CNBC

Core Viewpoint - Amazon is experiencing an increase in product prices on its e-commerce platform due to cost pressures from tariffs imposed by the U.S. government, as stated by CEO Andy Jassy [1][3]. Group 1: Impact of Tariffs - The company had previously accelerated inventory shipments and encouraged third-party sellers to stock up to avoid tariff-related shipping cost increases, but this strategy has run its course [2]. - Jassy noted that some sellers are passing on higher costs to consumers, while others are absorbing them to maintain demand, indicating a mixed response to the tariff impacts [3]. Group 2: Consumer Behavior - Despite rising prices, consumers have shown resilience, continuing to shop and seek bargains, although there is some hesitance regarding higher-priced discretionary items [4]. - Overall, Amazon's consumer base has remained stable, but the company is cautious about potential changes in consumer behavior in 2026 [4]. Group 3: Market Context - Rising prices and cost-of-living concerns in the U.S. are significant issues for political leaders, particularly ahead of the midterm elections [5]. - Amazon's stock saw a decline of 2.7% in early trading, reflecting broader market weaknesses [5].