Despite a market resurgence Wednesday and US President Donald Trump announcing a 90-day pause on his Liberation Day policy, Amazon has told consumers to expect prices to rise due to tariffs. Specifically, the company’s CEO, Andy Jassy, told CNBC that the company would be passing increased costs onto consumers.
Jassy noted that the company is still waiting to see how the tariff turmoil “plays out,” but expects the e-commerce firm to cope with increased prices. Moreover, he noted that the e-commerce juggernauts’ network of third-party sellers has been placed in a tough position by the ongoing import tax dilemma.
JUST IN: Amazon says to expect their prices to rise.
— Watcher.Guru (@WatcherGuru) April 10, 2025
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Amazon CEO Says Prices Will Likely Rise Amid Tariff Turmoil
The presence of increased global financial uncertainty is set to bring increased pressure to consumers in 2025, according to one executive. Indeed, Amazon CEO Andy Jassy has warned consumers to expect prices to rise due to the global tariff struggle and brewing trade war.
“I understand why,” Jassy said. “I mean, depending on which country you’re in, you don’t have a 50% extra margin that you can play with.” With so many sellers spread out throughout the globe, the executive said he thinks “they’ll try and pass the cost on.”
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The development was always a concern as the Trump administration sought to balance global trade. Moreover, in an annual shareholder letter, he said Amazon is looking at ways to cope with the efforts. Indeed, it has enacted “strategic forward inventory buys” amid the economic policy.
US President Trump announced a 90-day pause to the tax plan Wednesday. Moreover, the European Union responded in kind, also halting the increased import duties. That could be a good sign for concerned consumers. As these countries head back to the negotiating table, all parties could find a way forward. Moreover, it could arrive without the need for tariffs.