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Amazon CEO Andy Jassy says he believes sellers will pass increased tariff costs on to consumers

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Amazon CEO Andy Jassy: Sellers will pass increased tariff costs on to consumers

Amazon CEO Andy Jassy said Thursday the company is still digesting the impact of President Donald Trump’s sweeping tariffs, but that its vast network of third-party sellers may “pass that cost on” to consumers.

“I understand why, I mean, depending on which country you’re in, you don’t have 50% extra margin that you can play with,” Jassy said in an interview with CNBC’s Andrew Ross Sorkin. “I think they’ll try and pass the cost on.”

Jassy, who released his annual shareholder letter earlier in the morning, said the company has done some “strategic forward inventory buys” and looked to renegotiated terms on some purchase orders in an effort to keep prices low on its website.

Amazon has seen some evidence of consumers stocking up on items in anticipation of price hikes, but it’s too early to tell how widespread that behavior is, he added.