Amazon CEO Andy Jassy warned in April that rising tariffs could prompt third-party sellers on the platform to raise prices for customers, citing thin profit margins and global supply chain pressures.
In an interview with CNBC, Jassy noted that many sellers already operate on narrow margins, making it difficult to absorb additional costs without adjusting prices. “Some of them are likely going to try and pass the cost on,” he said.
The comments follow a new wave of tariff-related actions from President Donald Trump. In April, Trump extended existing 10% tariffs on goods from the European Union and Vietnam for 90 days but confirmed plans to increase tariffs on imports from China to as high as 125%.
Jassy emphasized Amazon’s commitment to affordability: “We’re going to try to do everything we can to keep prices as low as possible for customers.”
Amazon’s business model is heavily reliant on third-party sellers, who now account for the majority of sales on the platform. Many of these sellers source products globally, and steep tariffs on Chinese imports could significantly affect their operations.
According to Yahoo Finance, the company has observed a noticeable uptick in purchasing activity, as customers appear to be buying in anticipation of future price hikes. “We do see people buying ahead,” Jassy said. “But it’s hard to know if it’s just an anomaly in the data because it’s just a few days or how long it’s going to last.”
As of April, Amazon had not implemented broad pricing changes. The company continues to monitor trade policy developments, seller feedback, and consumer behavior to guide its next steps.
