Amazon CEO Andy Jassy has issued a serious warning that cheap prices for everyday goods may not last much longer. He spoke to CNBC about the impact of President Trump’s aggressive tariff policies and said they could create economic pressure that directly affects American shoppers.
Jassy explained that sellers on Amazon do not have extra margins to absorb these rising costs and will likely raise prices. He avoided naming China but acknowledged that many Amazon sellers depend on goods made overseas and any disruption could hurt supply and increase costs. He admitted the company has not seen major changes in consumer habits yet but stressed the risk is growing.

“I’m guessing that sellers will pass that cost on and I understand why I mean depending on which country you’re in you don’t have 50% extra margin that you can play with.” – Amazon CEO Andy Jassy

Jassy said Amazon is trying to protect customers by purchasing large amounts of popular products in advance and renegotiating with suppliers. He mentioned that there are regular conversations with the Trump administration to express the company’s concerns about tariffs. He also suggested that inflation and reduced demand could become real problems if the trade conflict worsens.

Amazon is not the only business worried as other major companies like Delta and Walmart are also adjusting their strategies. Although Amazon stock dipped slightly after Jassy’s comments it remains strong for the year. Still, his message was clear. The platform that became known for low prices might not be able to keep them low forever if tariffs continue to rise.

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