Amazon CEO Andy Jassy delivered a blunt warning on CNBC Thursday morning: Tariffs are coming for your shopping cart.
As President Trump escalates his global trade war, Amazon—whose marketplace is deeply reliant on Chinese imports—is preparing customers for inevitable price hikes.
“We don’t have 50% extra margin just sitting there,” Jassy said, referring to the sweeping 125% tariff hike on Chinese imports that went into effect this week. “Our sellers will pass that cost on.”
Inventory Moves and Damage Control
Jassy said Amazon has already taken “strategic forward inventory buys” and renegotiated terms with sellers in an attempt to delay price spikes.
“We’re doing everything we can to keep prices low,” he said. “But depending on where your products are made, there’s only so much anyone can absorb.”
With more than 70% of Amazon’s electronics and toys sourced from China, the pressure is building fast—especially with Beijing’s retaliatory 84% tariffs now targeting U.S. goods.
Shopper Behavior Shifts
So far, Amazon hasn’t seen “meaningful” changes in how customers shop. But inflation fatigue is clear.
“Customers are more careful. When they can trade down, they do. When they see a bargain, they grab it,” Jassy noted.
He also admitted to “people buying ahead” of expected increases, echoing recent spikes in big-ticket item sales like iPhones and appliances.
Amazon vs Walmart
While Amazon braces for impact, Walmart pulled its financial guidance this week due to tariff uncertainty—though it still expects up to 4% quarterly sales growth.
Meanwhile, Amazon shares (AMZN) opened down 3% Thursday, tracking broader market anxiety tied to the trade war.
The Big Picture
With tariffs on China now at 145% total, including special levies on fentanyl-linked goods, prices on everything from clothing to electronics may soon climb. That pressure trickles down to e-commerce leaders like Amazon—and straight into your cart.
For now, Amazon says it’s buying time. But shoppers? They might want to click “buy” before prices climb even higher.
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