Amazon CEO Andy Jassy stated that U.S. tariffs are beginning to cause price increases for products on its platform. Speaking at the World Economic Forum in Davos, Jassy explained that inventory pre-purchased by Amazon and third-party sellers to avoid the tariffs has now been depleted.
This marks a significant change from 2025 when Jassy noted that prices had not been appreciably affected. Now, sellers are increasingly faced with the choice of absorbing the higher costs, which is difficult in the low-margin retail sector, or passing them on to consumers. Jassy observed that while consumers remain resilient, they are becoming more hesitant about higher-priced discretionary items.