Amazon’s CEO expects that retailers will pass the expense of tariffs on to customers
Amazon’s chief executive officer (CEO) Andy Jassy suggested Thursday that third-party sellers will pass on the cost of tariffs to consumers as the company continues to address the impact of U.S. President Donald Trump’s levies.
“I assume the sellers will pass on the cost. Depending on what country you’re in, you don’t have 50% ‘extra’ margin that you can play with,” Jassy reflected in an interview.
The CEO stated that the company made certain «strategic forward inventory purchases» and attempted to renegotiate the conditions of some purchase orders to keep costs low on its online shopping platform.
Jassy stated that they are doing «everything they can» to keep pricing as low as possible.
Following Trump’s announcement of tariffs, Amazon began canceling some product orders from China this week, consultants told CNBC.
Some household goods suppliers were ready for Amazon to pick up their products at shipping ports, but received a notification through an internal system that the orders had been canceled.
