Amazon CEO Andy Jassy Warns Shoppers Are 'Starting To See More Of That Impact' As Trump's 10% Tariffs Begin Hitting Prices On Amazon

Core Insights - Price changes are starting to manifest in Amazon's marketplace due to tariff-related costs impacting consumer prices [1][3] - Amazon's CEO indicated that the company and third-party sellers had previously stocked inventory to mitigate tariff effects, but as these supplies deplete, prices are beginning to reflect the increased costs [3][4] - Retail economics present challenges in absorbing rising costs, with limited options available for retailers to manage significant cost increases [5] Price Changes and Tariffs - Amazon and third-party sellers took proactive measures last year by purchasing inventory in advance to limit tariff impacts [3] - As inventory runs out, the costs associated with tariffs are beginning to be passed on to consumers through higher prices [4] - Sellers are responding to tariff pressures by either increasing prices or absorbing costs to maintain demand [4] Economic Context - The retail sector operates on mid-single digit operating margins, making it difficult to absorb a 10% increase in costs without passing some of that burden onto consumers [5] - Despite economic uncertainty, consumers have shown resilience in spending but are adjusting their shopping behaviors [6]