Amazon CEO states Trump's tariffs are starting to increase product prices

Summary

Amazon CEO Andy Jassy stated that tariffs imposed by the Trump administration are beginning to increase prices for goods on its platform.Sina Finance+ 2Sina Finance This is occurring as sellers’ pre-purchased inventory, which had buffered the initial impact, is now being depleted.HongKong Economic Journal Jassy, speaking at the World Economic Forum, noted that some sellers are passing these higher import costs to consumers, while others are absorbing them.StatementDog This has started to affect consumer behavior, with shoppers seeking lower-priced alternatives and discounts more frequently.HongKong Economic Journal

Impact Analysis

So Jassy is basically getting ahead of a potential retail margin squeeze. By flagging this at Davos, he’s sending a clear, public signal: the inventory buffer that shielded consumers from tariffs is gone, and price hikes are now unavoidable.HongKong Economic Journal+ 2HongKong Economic Journal This is classic expectation management. He’s telling the market that if retail volumes or margins soften, it’s a macro issue (tariffs), not an Amazon execution problem. He specifically mentions consumers are hunting for deals, which puts sellers in a tough spot between absorbing costs or losing sales.HongKong Economic Journal

While the street remains bullish on the stock, focused on AWS and AI growth,Market Beat+ 2 this is a hard reminder that the massive e-commerce engine is facing real headwinds. It doesn’t change the long thesis driven by cloud, but it does introduce a drag on the retail segment that we need to watch. The key takeaway is that Jassy is protecting the narrative and highlighting the value of AWS as a buffer against retail volatility.