Amazon’s CEO, Andy Jassy, has acknowledged that consumers are beginning to feel the pinch of tariffs, less than a year after President Donald Trump introduced extensive tariffs on a variety of imported goods. In a conversation with CNBC, Jassy revealed that the stock Amazon and its third-party sellers had secured in early 2025 to maintain lower prices has been depleted. As a result, he noted, “you start to see some of the tariffs creep into some of the prices.”

This revelation comes shortly after the Kiel Institute for the World Economy released a study indicating that foreign exporters are absorbing a mere 4 percent of the tariff costs, with a staggering 96 percent being transferred to American consumers. Jassy explained to CNBC, “Some sellers are deciding that they’re passing on those higher costs to consumers in the form of higher prices,” while others choose to absorb the costs to stimulate demand.

In addition to the tariff surge, President Trump has also closed the “de minimis” loophole through an executive order, which previously allowed low-cost goods to enter the U.S. without incurring duties. This closure took effect last August, and according to Jassy, it leaves Amazon and its partners with limited options to prevent further price hikes.

“If people’s costs go up by 10 percent, there aren’t a lot of places to absorb it,” Jassy pointed out. “We’re committed to working closely with our selling partners to keep prices as low as possible for consumers, but options are not limitless.”