Amazon CEO “Tariff increases, potential impact on consumer prices… government also aware of concerns”

Amazon CEO Andy Jassy (Source: Fortune)

Amazon Chief Executive Officer (CEO) Andy Jassy expressed concern about the potential impact of President Donald Trump's tariff policies on consumer prices.

In an interview with CNBC on the 10th (local time), Jassy said, “The increased tariffs on Chinese products directly affect the cost structure borne by online retailers, which could result in some costs being passed on to consumers.”

President Trump has recently reinforced reciprocal tariffs on several countries, including China, and especially high tariffs of up to 145% are being imposed on Chinese products. As Amazon procures numerous products from China, it cannot be free from the sphere of influence resulting from tariff changes.

Jassy CEO added, “There is still no noticeable change in consumer purchasing patterns,” but “Given the market situation is unstable, it is difficult to predict what response will occur in the future.” He also explained that he had exchanged opinions with the U.S. government on this issue, and that the authorities were also aware of the impact tariffs have on consumers and retailers.

Meanwhile, Jassy emphasized aggressive investment in the fields of artificial intelligence and healthcare, stating in his annual shareholder letter released on the same day that Amazon should “operate as nimbly as the world's largest startup.” Amazon is focusing a significant portion of its more than $100 billion in capital expenditures this year on AI projects.

However, it is pointed out that changes in tariff policies directly connected to the global supply chain have a high possibility of acting as a significant variable in Amazon's future cost structure and performance. Jassy stated, “Even amid such uncertainty, Amazon will continue consumer-centric innovation.”