Amazon (NASDAQ: AMZN) sells millions of products every day, many of them made in China. Lately, shoppers notice something different when they check out. Prices on those items have ticked up. The reason comes down to tariffs, which are taxes governments place on goods crossing borders. Andy Jassy, the chief executive of Amazon, spoke about this during a recent interview on CNBC. He explained that these tariffs are starting to push product prices higher across the platform.
Tariffs work like this. When a country such as the U.S. adds a tax on imports from places like China, the companies bringing those goods in pay the extra cost at the border. Retailers then often pass that expense along to customers. Jassy made it clear that Amazon has begun raising prices on some Chinese imports to cover these new duties. This change shows up in everyday items, from electronics to household goods. Shoppers see the difference right away at checkout.
President Trump has pushed these tariffs as part of his trade policy. His administration argues that foreign exporters, not U.S. buyers, bear the real burden. White House officials repeat this view often. In practice, though, the costs flow through the supply chain and land with American consumers. Economists point out that importers pay the tariff upfront, but they recover it by charging more for the products. Jassy confirmed this pattern in his comments. He noted specific price bumps on goods hit by the duties.
Consider a typical example. A gadget from China might have faced no extra tax last year. Now, with tariffs in place, that same item carries a 25% duty. The seller absorbs some of it at first, but over time, the full amount gets added to the shelf price. Amazon sources a large share of its inventory from Chinese factories. As these taxes grow, more products feel the effect. Jassy mentioned that the company watches these shifts closely and adjusts accordingly.
This situation raises questions for regular buyers. Many people rely on Amazon for affordable options. Higher prices mean tighter budgets for families and small businesses alike. Some customers might switch to domestic alternatives, but those often cost more to begin with. Others could cut back on nonessential purchases. Jassy did not predict a full shopping slowdown yet. He focused instead on the direct link between tariffs and price tags.
Businesses beyond Amazon face similar pressures. Walmart and Target, for instance, depend on imported goods too. They report the same trend. Smaller online sellers feel it even harder since they lack the scale to negotiate with suppliers. Trade experts expect these effects to spread as tariff rates stay high or climb further. The U.S. imports over $500 billion in Chinese goods each year. A significant portion flows through e-commerce platforms like Amazon.
Supply chains add another layer. Factories in China produce components that U.S. companies assemble here. Tariffs on those parts increase manufacturing costs at home. Amazon sells finished products, but it also offers services to third-party sellers. Many of them import directly from Asia. As their costs rise, they pass them on through Amazon’s marketplace. This creates a broad impact across the site.
Shoppers can take steps to navigate this. Comparing prices across sites helps find the best deal. Some turn to U.S.-made goods, though options remain limited in many categories. Amazon itself promotes Prime deals and discounts, but those might shrink as base prices grow. Jassy emphasized transparency about the changes. He wants customers to understand why certain items cost more now.
Trade talks between the U.S. and China continue in the background. Negotiations could ease some tariffs down the road. For now, though, the policy holds firm. President Trump views it as a tool to protect American jobs and reduce the trade deficit. Critics say it hurts consumers more than it helps workers. Data shows import volumes holding steady so far, but price sensitivity could shift that pattern.
Retail leaders watch Davos meetings and other global forums closely. These gatherings often signal policy shifts. Jassy spoke from the World Economic Forum, where business heads discuss such issues. His comments there drew attention because they came straight from someone running a massive retail operation. Amazon handles over 40% of U.S. e-commerce sales. Changes on its platform affect the whole market.
Higher costs challenge retailers to rethink strategies. Amazon invests heavily in logistics and technology to keep prices competitive. Tariffs test that edge. The company might push suppliers for better terms or expand U.S. sourcing. Shoppers, meanwhile, adapt by hunting bargains or buying less. Trade policies shape daily choices in ways few notice until the bill arrives. The full story unfolds one cart at a time.Â
