Amazon CEO Andy Jassy says tariffs are starting to drive up product prices
TechCrunch • • business
Key Points:
- Amazon CEO Andy Jassy acknowledged that consumers are beginning to experience higher prices as sellers pass on increased costs from President Trump's tariffs.
- Amazon and its third-party sellers initially stocked up on inventory before the tariffs to maintain low prices, but those supplies mostly ran out last fall, leading to price increases.
- Some sellers are absorbing the tariff costs to maintain demand, while others are raising prices, reflecting a mix of strategies in response to higher expenses.
- Jassy noted that retail operates on thin margins, making it difficult to absorb a 10% increase in costs without raising prices.
- Despite price hikes, consumers remain resilient by shifting to cheaper products and postponing premium discretionary purchases.
