Amazon CEO Andy Jassy says tariffs are starting to drive up product prices

Core Insights - Amazon CEO Andy Jassy indicates that consumers are starting to experience higher prices as sellers pass on costs from tariffs imposed by President Donald Trump [1][2] - Jassy noted a shift from the previous year when prices had not increased following the announcement of tariffs, suggesting that the impact of tariffs is becoming more pronounced [2] - Despite efforts to maintain low prices, Jassy acknowledged that price increases may be unavoidable due to the low operating margins in retail, particularly when costs rise significantly [3] Pricing Dynamics - Some sellers are choosing to pass on higher costs to consumers, while others are absorbing costs to maintain demand, indicating a mixed approach among sellers [2] - Consumers are showing resilience by shifting towards cheaper items and bargain hunting, while some are delaying premium purchases [3] Inventory Management - Amazon and its third-party sellers had previously stocked up on inventory to keep prices low, but this supply has largely been depleted since last fall, leading to potential price increases [1]