US tariffs: Is the price of ordinary goods about to rise? Here’s what Amazon CEO Andy Jassy warned
Consumer Price
Jassie said the tariffs proposed by the Trump administration could result in higher costs. These increases may be passed on to the buyer. Many Amazon sellers have very small profit margins. This makes it difficult for them to absorb new costs. Jassy pointed out the risks of macroeconomic problems. He said rising prices could reduce consumer spending or lead to inflation.
Supply Chain Uncertainty
Jassy mentioned that the company is preparing for changes in product demand. Although many sellers purchase goods there, he avoided naming China directly. CNBC’s Andrew Ross Sorkin plays an important role in China in the Amazon supply chain. Jassy said it was too early to know how things would go. The company tries to manage customer experiences in uncertainty.
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Try to keep prices stable
Amazon is taking steps to limit price increases. This includes buying popular products in advance. The company also renegotiates contracts with suppliers. Jassie said they are doing everything they can to maintain their current prices for their customers. Nevertheless, he admits that there are still many unknowns.
Other companies have also affected
Jassy noted that other major companies, such as Walmart and Delta, are also paying attention. In this case, corporate concerns are common, he said. Possible results include lower demand and higher inflation. Jassy stressed that it was too early to know the exact effect.Also read: Selected Season 5: Part 3 Release Date, Watch Here and Part 1 International Release Date
Ongoing talks with the U.S. government
Jassy confirmed that Amazon talks to the U.S. government frequently. These negotiations include tariff issues and how they affect consumers and businesses. He said the government is aware of Amazon’s concerns. However, Jassy has not commented on the report linking Amazon to possible Tiktok bids.
Market reaction
Amazon shares fell more than 6% on Thursday. Still, it grew by more than 8% in a week. On February 4, the stock price reached $242.06.
FAQ
Why does Amazon raise the price of basic items?
Amazon may raise prices due to U.S. tariffs. Sellers facing higher import costs may pass these costs to customers to avoid losses.
How does Amazon plan to manage price increases?
Amazon plans to buy popular items in advance and renegotiate supplier deals to reduce the impact of potential price increases.
