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'You dont have endless options': Amazon CEO Andy Jassy warns tariffs are
already raising prices

Date:
Wed, 21 Jan 2026 12:30:00 +0000

Description:
Stockpiling bought consumers some time, but Trump's tariffs are pushing up
prices across retail now.

FULL STORY

Amazon CEO Andy Jassy has warned import and export tariffs imposed by the
Trump adminsitration are now starting to be reflected in the company's 
product prices, adding to financial pressure for customers everywhere. 

"You don't have endless options," he explained in an interview with CNBC .
ahead of the Davos economic forum. 

Jassy recently explained tariffs had not initially affected consumer prices,
thanks to stockpiling efforts. However with no easing on tariffs, prices
remain high and stock low.

Trump tariffs are having a knock-on effect for consumers

Although companies like Amazon had previously stockpiled inventory before
price hikes to prolong lower prices as much as possible, supplies are running
out and tariff-influenced prices are becoming commonplace. 

This is now leaving vendors with two choices  either to pass on those higher
costs to consumers, or to absorb them. 

Jassy explained Amazon's approach will be to pass on those costs to 
consumers, with the CEO explaining that thin retail margins make it 
impossible to absorb extra costs. With retail operating on mid-single-digit
margins, a 10% cost increase is pretty catastrophic. 

Retail trade groups had already previously warned that tariffs could lead to
higher prices and reduced product availability. "I think you're starting to
see more of that impact," Jassy added. 

As a result, shopping behavior has changed in recent months, with a greater
concentration of buying cheaper items and delayed purchases of premium
products. 

The PC industry is also undergoing similar pressure with stock dwindling as
manufacturers focus on high-value AI components. The result is that high-end
products with bigger margins are slightly more insulated against price
fluctuations, while budget devices are being stripped back with inferior
components to stay at their low price points. 

======================================================================
Link to news story:
https://www.techradar.com/pro/you-dont-have-endless-options-amazon-ceo-andy-ja
ssy-warns-tariffs-are-already-raising-prices

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