Link: Amazon’s CEO says tariffs are starting to ‘creep into’ pricing

Amazon CEO Andy Jassy revealed that the inventory secured in early 2025 to mitigate tariff impacts has been depleted. Consumers are now beginning to feel the pinch of price increases.

Jassy's statement was made during a CNBC interview, aligning with findings from the Kiel Institute that most tariff costs fall on American consumers. The study noted that only 4 percent of these costs are absorbed by foreign exporters.

As tariffs begin to affect prices, sellers on Amazon are faced with a choice: to pass these costs onto consumers or absorb them themselves to maintain demand. This decision varies among sellers.

Further complicating matters, President Trump closed the de minimis loophole which allowed low-cost goods to enter the US duty-free. This action is now exacerbating pricing issues for consumers.

Jassy emphasized that the scope for absorbing additional costs is limited. "If people’s costs go up by 10 percent, there aren’t a lot of places to absorb it," he commented.

The CEO shared a commitment to collaborating with sellers to keep prices as competitive as possible, despite these challenging conditions. Yet, he admitted that mitigating these price surges completely isn't feasible. #

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Yoooo, this is a quick note on a link that made me go, WTF? Find all past links here.