E-commerce giant Amazon.com Inc. (NASDAQ:AMZN) is navigating shifting tariff pressures as rising costs begin to affect prices, supplier negotiations, and investor sentiment.
CEO Andy Jassy said Tuesday in an interview with CNBC's Becky Quick at the World Economic Forum in Davos that sweeping tariffs imposed by President Donald Trump are beginning to show up in the prices of some products as sellers decide how to manage higher costs.
The e-commerce giant and many third-party sellers stocked up on inventory ahead of the tariffs to protect customers from price increases, but that inventory essentially ran out last fall, Jassy added.
Amazon stock dropped after the report.
Consumer Behavior Shifts as Margins Tighten
Jassy's comments mark a shift from last year, when he said Amazon had not seen prices "appreciably go up" months after the tariffs were announced.
He reiterated that while Amazon is trying to "keep prices as low as possible," price increases may be unavoidable in some cases because retail operates on thin margins.
Jassy added that consumers remain resilient but are adjusting their spending, with some trading down to cheaper items or delaying discretionary purchases.
Amazon Pushes Back, Then Reopens Supplier Talks
Last July, Amazon pushed back against a report claiming it raised prices on thousands of items because of tariffs imposed by Trump.
The company said it has not increased prices on millions of everyday essentials and called the Wall Street Journal analysis flawed and misleading.
Amazon had said the report relied on a small, "cherry-picked" sample of fewer than 2,500 items—about 0.04% of its more than six million everyday essentials—and compared prices on only two dates.
The company reopened pricing discussions with some suppliers last Tuesday after lower U.S. tariffs on Chinese imports reduced cost pressures across its e-commerce supply chain.
The talks follow reports that Amazon is seeking to roll back earlier pricing concessions made to offset tariffs imposed by Trump.
AMZN Price Action: Amazon.com shares were down 2.21% at $233.77 at the time of publication on Tuesday, according to Benzinga Pro data.
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