In brief: Amazon CEO Andy Jassy has assured the company's shareholders that Trump's tariffs have neither increased average selling prices of items on the site nor have they affected consumer demand. It comes a few weeks after Amazon was blasted by the White House over a plan to show exactly how much the tariffs will increase the cost of items on its Amazon Haul site.
Speaking during a question and answer session at Amazon's annual shareholder meeting, Jassy said "We have not seen any attenuation of demand at this point […] We also haven't yet seen any meaningful average selling price increases."
"When you have 2 million sellers, they're not all going to take the same action."
Jassy admitted that some sellers have increased prices on the site, while others have kept them static. But according to the CEO, overall average prices and consumers' willingness to spend have remained unchanged so far.
Chinese companies selling on Amazon are one group that has raised prices. An April report found many merchants increasing prices in direct response to the tariffs – one admitted to a 30% hike for US customers.
Amazon previously said that the tariffs were one of several factors that could see the company change its guidance for the current quarter.
Walmart recently warned that consumers could start seeing higher prices as a result of the tariffs as soon as later this month. Trump's response was to tell the retailer to "eat the tariffs." Target said it will also likely raise prices on certain items, though Home Depot said it expects pricing levels to remain the same.
While the 145% tariffs on Chinese imports have been paused, it is only until August 12. A 30% tariff on Chinese goods (with some exemptions) remains in place.
Apple, meanwhile, is said to be raising the prices of its next-generation iPhones, but the company will stress the move is due to their extra features, not the tariffs.
Amazon found itself in trouble with the White House last month when a report revealed it was considering listing import charges for certain products sold on its Haul spinoff site, which sells items for under $20. This would show customers exactly how much more they would be paying because of the tariffs. The vast majority of the goods on Amazon Haul come from China.
An Amazon source said the end of the de minimis exemption that allows US consumers to receive foreign packages valued under $800 without paying duties had sparked the plan.
Press Secretary Karoline Leavitt called the move "a hostile and political act," asking "Why didn't Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?" It even led to Trump calling Jeff Bezos about the situation. "He solved the problem very quickly. Good guy," the President said of the Amazon founder.
Trump tariffs haven't impacted Amazon's prices or customer spending, says CEO
