Amazon Warns Prices Could Rise Due to China Tariffs

CEO Andy Jassy Says Tariff Costs Likely Passed to Consumers

Amazon shoppers may soon see higher prices as a result of the U.S.–China tariff war. During an interview on CNBC’s “Squawk Box,” Amazon CEO Andy Jassy explained that third-party sellers affected by tariffs will likely pass those added costs on to consumers. “You don’t have 50% extra margin to play with,” Jassy noted. “I think they’ll try and pass the cost on.”

Amazon Working to Keep Prices Low

While stopping short of confirming reports that Amazon canceled China-based orders, Jassy emphasized that the company is “doing everything we can to keep prices as low as possible.” Amid the uncertainty, Amazon has pursued strategic inventory buys to lock in lower prices for customers and renegotiated some supplier deals to minimize the impact of new tariffs.

Trump Tariffs Shake Global E-Commerce

President Trump’s recent tariff decision includes a 90-day reduction to 10% for many countries — but Chinese goods now face a steep 145% duty. The White House clarified this on Thursday, deepening the economic strain on Chinese exporters and global platforms like Amazon.

Chinese Sellers Prepare for Price Hikes

Chinese Amazon sellers are already bracing for the impact. Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association, said many plan to raise prices for U.S. consumers to cope with the new cost structure. “This isn’t just a tax issue — the entire cost structure gets overwhelmed,” she warned, adding that customs delays and higher logistics costs will likely follow.

Shoppers Stockpile Ahead of Price Surges

In the days since the tariffs were announced, Amazon has observed early signs of stockpiling behavior. “In certain categories, we do see people buying ahead,” Jassy said. However, it remains unclear if this is a short-term reaction or a longer trend. “We’re going to do everything we possibly can to keep prices low for customers,” he emphasized.