From Amazon to Japanese manufacturers, businesses worldwide are racing to adapt to the Trump administration’s rapid tariff increases, which are reshaping global trade dynamics. Amazon CEO Andy Jassy , in a recent CNBC interview, vowed to shield customers from soaring costs. “We’re doing everything we can to keep prices as low as possible,” Jassy said, acknowledging the strain tariffs place on businesses. “Depending on the country, you don’t have 50% extra margin to absorb these costs. Companies will likely pass them on to consumers.”
Order Cancellations in Response to Tariffs
Following President Trump’s latest tariff announcements, Amazon swiftly canceled orders for goods from China and Southeast Asia, including beach chairs, scooters, and air conditioners, according to Bloomberg News. These products, purchased directly by Amazon for U.S. resale, were among the first casualties of the new trade policies.
Third-Party Sellers Face Pricing Pressures
Amazon’s third-party marketplace, which accounts for 60% of its sales, includes millions of sellers, many reliant on Chinese manufacturing. Jassy predicted these merchants would raise prices to offset tariff costs. “I’m guessing sellers will pass that cost on to consumers,” he noted.
In his annual shareholder letter, Jassy revealed Amazon’s proactive steps to cushion the tariff blow, including strategic bulk inventory purchases and renegotiated supplier contracts. These efforts aim to stabilize prices amid rising costs.
Signs of Consumers Stockpiling
Amazon has observed early indications of customers stockpiling goods to dodge expected price hikes. “People have not stopped buying and in certain categories, we do see people buying ahead, but it’s hard to know if it’s just an anomaly in the data because it’s just a few days, or how long it’s going to last,” Jassy said.
Order Cancellations in Response to Tariffs
Following President Trump’s latest tariff announcements, Amazon swiftly canceled orders for goods from China and Southeast Asia, including beach chairs, scooters, and air conditioners, according to Bloomberg News. These products, purchased directly by Amazon for U.S. resale, were among the first casualties of the new trade policies.
Third-Party Sellers Face Pricing Pressures
Amazon’s third-party marketplace, which accounts for 60% of its sales, includes millions of sellers, many reliant on Chinese manufacturing. Jassy predicted these merchants would raise prices to offset tariff costs. “I’m guessing sellers will pass that cost on to consumers,” he noted.
In his annual shareholder letter, Jassy revealed Amazon’s proactive steps to cushion the tariff blow, including strategic bulk inventory purchases and renegotiated supplier contracts. These efforts aim to stabilize prices amid rising costs.
Signs of Consumers Stockpiling
Amazon has observed early indications of customers stockpiling goods to dodge expected price hikes. “People have not stopped buying and in certain categories, we do see people buying ahead, but it’s hard to know if it’s just an anomaly in the data because it’s just a few days, or how long it’s going to last,” Jassy said.
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