Despite President Donald Trump putting a hold on some tariffs on Wednesday, Amazon CEO Andy Jassy said the tariffs President Trump left in place could result in higher prices.
While President Trump put a 90-day pause on "reciprocal" tariffs on 85 nations, he left in place a blanket 10% tax on nearly all imports and a 25% tariff on steel and aluminum products.
President Trump also increased tariffs on Chinese products to 145%.
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Jassy told CNBC that Amazon is letting the tariff saga play out, but the impacts will be felt. Jassy noted that many of Amazon's products are sold on the website through third-party sellers, many of whom are based in China.
“Depending on which country you’re in, you don’t have a 50% extra margin that you can play with,” Jassy told CNBC on Thursday. “I think they’ll try to pass the cost along.”
Jassy said that in anticipation of tariffs, customers have changed their buying habits, with some stocking up on items in anticipation of price increases.
“People have not stopped buying, and in certain categories, we do see people buying ahead, but it’s hard to know if it’s just an anomaly in the data because it’s just a few days, or how long it’s going to last,” Jassy told CNBC.
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Other CEOs have given similar statements, noting that tariffs will increase prices. Both the leaders of Target and Best Buy said in March that they anticipated price increases because of tariffs.
Jassy's interview came on the same day he released the company's annual letter to investors. The letter revealed that Amazon's total revenue grew 11% year-over-year in 2024. The letter also outlined Amazon investing additional investment into AI technology.
