Amazon CEO Reveals Tariff Impact: Are Prices Rising?

Big changes could be coming to Amazon. And your wallet. Amazon CEO Andy Jassy just dropped some news about potential price hikes.

Here’s the deal: Remember those tariffs we’ve been hearing about? Well, they could be hitting your favorite online store soon.

Blame the Tariffs?

Jassy thinks Amazon sellers will likely pass those tariff costs onto you, the customer. In simple terms? Higher prices.

President Trump put a 10% tariff on all trading partners. China got hit with an “at least” 145% tariff. Ouch. This impacts tons of products sold on Amazon. Wedbush Securities estimates that up to 70% of the products on Amazon come from China.

Are You Stocking Up Already?

Are shoppers already reacting? Maybe. Jassy says some people might be buying ahead of the price increases.

But he’s not sure if it’s a real trend yet. “People have not stopped buying,” Jassy told CNBC. “And in certain categories, we do see people buying ahead. ” But he added that short-term data is hard to read.

Amazon’s Plan of Attack

What’s Amazon doing about it?

Jassy mentioned that Amazon has made some “strategic” inventory buys. They’re also trying to renegotiate some deals. According to Bloomberg, Amazon even canceled some orders from Chinese sellers recently.

AI on the Horizon

There’s more! Jassy also talked about AI in his annual shareholder letter. Amazon plans to spend a whopping $100 billion on AI this year.

He says AI requires a “substantial capital investment” right now. But he believes the cost of AI chips will eventually go down.

Get ready. Prices might be going up. But Amazon is also betting big on the future of AI. It’s a changing world out there.