Jan 20 (Reuters) – Amazon.com is starting to see an uptick in product costs on its e-commerce platform as sellers reply to price pressures stemming from U.S. President Donald Trump’s tariffs, the tech large’s CEO, Andy Jassy, instructed CNBC on Tuesday.
The firm had pulled ahead its stock shipments early final yr and urged third-party sellers to carry in additional inventory forward of time to circumvent tariff-driven surges in transport prices, however “that supply has run out in the fall,” Jassy stated within the interview on the World Economic Forum in Davos, Switzerland.
“(We’re starting) to see some of the tariffs creep into some prices. Some sellers are deciding that they’re passing on those higher costs to consumers, some are deciding that they’ll absorb it to drive demand, and some are doing something in between. So you’re starting to see more of that impact,” Jassy stated.
Still, customers have been largely resilient, with folks persevering with to store and searching for bargains, Jassy stated, including that buyers are a “little bit more hesitant” on higher-priced discretionary purchases.
“Amazon’s consumers overall have fared well. But we’ll have to see what happens in 2026.”
The firm has stated over the previous yr that it was seeing little or no affect on client habits and product costs from tariffs. It has doubled down on increasing product classes and dashing up supply timelines to protect demand.
Meanwhile, rising costs and mounting cost-of-living considerations within the U.S. have emerged as key questions for Trump to handle forward of the midterm elections this yr.
U.S. tariffs are additionally a vital speaking level for world leaders in Davos this week.
Amazon’s shares have been down 2.7% in early buying and selling amid weak spot within the broader market.
Separately, talking at Davos to CNBC, Coca-Cola’s outgoing CEO stated the corporate was “relatively immune to tariffs”. The firm is uncovered to some greater prices from aluminum and resin, however has stated over the previous yr that tariffs have been “manageable” for the corporate due to its largely localized manufacturing processes.
(Reporting by Deborah Sophia in Bengaluru; Editing by Maju Samuel)