Amazon’s CEO says tariffs are starting to ‘creep into’ pricing | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAICESHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessSee all techGadgetsExpandLaptopsPhonesTVsHeadphonesSpeakersWearablesSee all gadgetsReviewsExpandSmart Home ReviewsPhone ReviewsTablet ReviewsHeadphone ReviewsSee all reviewsAIExpandOpenAIAnthropicSee all AIVerge ShoppingExpandBuying GuidesDealsGift GuidesSee all shoppingPolicyExpandAntitrustPoliticsLawSecuritySee all policyScienceExpandSpaceEnergyEnvironmentHealthSee all scienceEntertainmentExpandTV ShowsMoviesAudioSee all entertainmentGamingExpandXboxPlayStationNintendoSee all gamingStreamingExpandDisneyHBONetflixYouTubeCreatorsSee all streamingTransportationExpandElectric CarsAutonomous CarsRide-sharingScootersSee all transportationFeaturesVerge VideoExpandTikTokYouTubeInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersExpandThe Verge DailyInstallerVerge DealsNotepadOptimizerRegulatorThe StepbackArchivesStoreSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.Amazon’s CEO says tariffs are starting to ‘creep into’ pricingComments DrawerCommentsLoading commentsGetting the conversation ready...NewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsBusinessCloseBusinessPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All BusinessPolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyAmazon’s CEO says tariffs are starting to ‘creep into’ pricingAndy Jassy says the supply of products Amazon prebought in early 2025 has ‘run out.’Andy Jassy says the supply of products Amazon prebought in early 2025 has ‘run out.’by Emma RothCloseEmma RothNews WriterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Emma RothJan 20, 2026, 3:01 PM UTCLinkShareGiftIf you buy something from a Verge link, Vox Media may earn a commission. See our ethics statement.Image: Cath Virginia / The Verge, Getty ImagesEmma RothCloseEmma RothPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.Amazon CEO Andy Jassy says consumers are starting to see the impact of tariffs less than a year after President Donald Trump implemented sweeping fees on a range of imported goods. During an interview with CNBC, Jassy says the inventory Amazon and third-party sellers prebought in early 2025 to keep prices low has “run out,” which means “you start to see some of the tariffs creep into some of the prices.”The admission comes just one day after a study from the Kiel Institute for the World Economy found that foreign exporters absorb just 4 percent of the cost of tariffs, while 96 percent is passed on to American consumers. “Some sellers are deciding that they’re passing on those higher costs to consumers in the form of higher prices,” Jassy tells CNBC. “Some are deciding that they’ll absorb it to drive demand.”On top of a wave of tariffs, Trump issued an executive order to close the “de minimis” loophole that allowed low-cost goods to enter the US duty-free. The block went into effect last August, and according to Jassy, there isn’t much else Amazon and third-party sellers can do to stave off additional price increases.“If people’s costs go up by 10 percent, there aren’t a lot of places to absorb it,” Jassy says. “So we’re going to do everything we can to work with our selling partners to make prices as low as possible for consumers — but you don’t have endless options.”Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Emma RothCloseEmma RothNews WriterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Emma RothAmazonCloseAmazonPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AmazonBusinessCloseBusinessPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All BusinessNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsPolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyPoliticsClosePoliticsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PoliticsTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechMost PopularMost PopularSony’s TV business is being taken over by TCLHow much can a city take?Bungie’s Marathon shooter launches on March 5thAsus may have made its last phoneA second US Sphere could come to MarylandThe Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. 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Amazon CEO Andy Jassy has indicated that consumers are beginning to experience the effects of tariffs, a development occurring less than a year after the implementation of sweeping tariffs by President Donald Trump. Jassy stated that the supply of products Amazon and third-party sellers pre-purchased in early 2025 to maintain low prices has “run out,” leading to a situation where “you start to see some of the tariffs creep into some of the prices.” This admission came after a Kiel Institute for the World Economy study revealed that foreign exporters are only absorbing 4% of tariff costs, with the remaining 96% being passed on to American consumers.

Several factors contributed to this shift. Firstly, Trump issued an executive order that effectively closed the “de minimis” loophole, which previously allowed for low-cost goods to enter the US without incurring duties. This change took effect in August of the previous year. The limited supply of pre-purchased inventory effectively ended Amazon and third-party vendors’ ability to absorb these costs; consequently, price increases are becoming increasingly visible to consumers.

Jassy explained that some sellers are choosing to pass on the higher costs to consumers either through increased prices or by absorbing them themselves to stimulate demand. However, he emphasized that options for cost reduction are ultimately limited given the elevated costs. “If people’s costs go up by 10 percent, there aren’t a lot of places to absorb it,” Jassy stated, highlighting the constrained options available.

The situation underscores a significant challenge for Amazon and its marketplace partners, as they navigate a trade environment influenced by policy decisions. The shift in cost allocation indicates a fundamental change in how international trade impacts consumer prices in the United States.