"Amazon CEO Andy Jassy says consumers are starting to see the impact of tariffs less than a year after President Donald Trump implemented sweeping fees on a range of imported goods. During an interview with CNBC, Jassy says the inventory Amazon and third-party sellers prebought in early 2025 to keep prices low has "run out," which means "you start to see some of the tariffs creep into some of the prices.""
"The admission comes just one day after a study from the Kiel Institute for the World Economy found that foreign exporters absorb just 4 percent of the cost of tariffs, while 96 percent is passed on to American consumers. "Some sellers are deciding that they're passing on those higher costs to consumers in the form of higher prices," Jassy tells CNBC. "Some are deciding that they'll absorb it to drive demand.""
Tariffs implemented under the Trump administration and the closure of the de minimis loophole are increasing costs for imported goods. Amazon and third-party sellers prepaid inventory in early 2025 to delay price increases, but that inventory has run out and tariffs are beginning to affect consumer prices. A study from the Kiel Institute found foreign exporters absorb only 4 percent of tariff costs while 96 percent is passed to American consumers. Some sellers are passing higher costs to shoppers while others absorb costs to maintain demand, but retailers have limited options to offset roughly 10 percent cost increases.
Read at The Verge
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