Amazon CEO Says Tariffs Are Raising Product Prices

• Amazon pulled forward inventory shipments in early 2025 and encouraged third-party sellers to stock up ahead of tariffs, but those supplies ran out by fall
• Sellers are taking varied approaches: some passing tariff costs to consumers, some absorbing costs to maintain demand, and others using mixed strategies
• Consumers continue shopping and seeking bargains but show increased hesitation toward higher-priced discretionary purchases, with uncertainty about 2026 trends

Summary

Key Development:

Amazon CEO Andy Jassy confirmed that product prices on the e-commerce platform are rising due to U.S. tariffs imposed under President Trump's administration. Speaking at the World Economic Forum in Davos on January 20, 2026, Jassy told CNBC that inventory buffers have been exhausted since fall, forcing the impact of tariffs onto consumers.

Company Response:

Amazon had previously pulled forward inventory shipments in early 2025 and encouraged third-party sellers to stockpile goods to avoid tariff-related cost increases. However, these supplies ran out by fall. Sellers are now responding differently: some are passing costs to consumers, others are absorbing them to maintain demand, and some are implementing hybrid approaches.

Consumer Behavior:

Despite price pressures, consumers remain "largely resilient," continuing to shop and seek bargains. However, Jassy noted shoppers are "a little bit more hesitant" about higher-priced discretionary items. He expressed cautious optimism, stating "we'll have to see what happens in 2026."

Market Context:

Amazon previously reported minimal tariff impact on consumer behavior and pricing throughout the past year. The company has focused on expanding product categories and improving delivery speed to protect demand. Rising prices and cost-of-living concerns have become critical political issues ahead of U.S. midterm elections.

Industry Comparison:

Coca-Cola's outgoing CEO stated the beverage company remains "relatively immune to tariffs" due to largely localized manufacturing, though facing some increased costs from aluminum and resin.

Broader Implications:

Tariffs remain a central discussion point among global leaders at Davos, highlighting their widespread economic impact.