Trump tariffs haven't impacted Amazon's prices or customer spending, says CEO

[midian182]

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.

Andy Jassy

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.

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Trump tariffs haven't impacted Amazon's prices or customer spending, says CEO

 

[The Talking Tech]

Ha Ha Ha....Sure....
Did everyone forget the fiasco Amazon and Trump had just a few weeks ago when Amazon threatened his administration by posting Amazon's prices "Before and after" the Tariffs?...well I'm sure you haven't forgotten that episode.

God only knows what kind of Quid Pro Quo Trump entered with Bezos for Amazon to eat the Tariffs as his administration asked Walmart to do.

 

[OortCloud]

I expect he will call Jeff before his next 100% tariffs -> 200% tariffs -> 0% tariffs rollercoaster so he can join Trump and his fellow felons in some good, honest, market manipulation and short selling. The administration can't spend a single day without some form of shameless corruption and general pig-in-trough greed at the expense of the public.

 

[Roach182]

From the article:
"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."

How does one get to be CEO without an understanding of basic math. If some raised prices and the rest remained static, the average has to increase.

 

[ScottSoapbox]

Yeah but most of the tarrifs are “paused” so the full impact hasn’t happened yet.

As for demand, I know many people (myself included) are buying things before the prices go up.

 

[Haaky]

I though according to Trump that it was the export countries that paid the tariff?
Oh gee Trump was full of ****.
What a surprise.
Well you can't trust a convicted felon and sexual predator now can you.

 

[dangh]

How does one get to be CEO without an understanding of basic math.

He perfectly understands basic math, but at the same time he perfectly understands what average joe things on basic math (in bible belt accent: 'math has been debunked!')

With years and years of degrading public education level for country's population, and with astronomical prices for a good education, there is nothing surprising about it. The field has been planned, created, and cotton is already sown. Slaves, stop, workers never need more education than required to perform simple actions. If they start to think bad stuff happens...

 

[letsgoiowa]

The string lights I wanted to get went from $55 to $140. Curiously, pretty close to the 140% tariff...

 

[Kashim]

I love magic math. It costs more for Amazon to order things from China now, but somehow prices are not going to go up and profits are not going to go down. Magically everything will stay the same. I wish I could use this magic math to pay my bills and still keep my money at the same time.

 

[TimOd]

The reason Amazon isn't impacted and every other retailer is has to do with the fact that a lot of tariff dodging going on at Amazon. More than 50% of Amazon's top vendors are based in China with no US affiliation (google it for confirmation).

Chinese nationals with no US footprint, are importing product with a reduced tariff value. They in turn sell it 'DDP' - Delivered Duty Paid - to Amazon.

To explain this, on an item worth $10, a US company has to pay $3 in tariffs, for a $13 cost.
A Chinese based company claims this same item costs $3. They pay $0.90 tax on this, for a $10.90 cost. This put them at roughly a 20% benefit over a legit company.

Walmart and every other normal retailer buys from massive companies that they know and can track throughout the entire process. Amazon buys from millions of individuals -- and as noted, more than 50% of them are Chinese based with no US presence.

It IS illegal to do this. If this company gets caught, they simply close up shop and ship again under a different company name. They might lose a little bit of money in the surety bond they put up, but that is insignificant compared to the 20% advantage they have.

THAT is why Walmart and other legitimate retailers are forced to raise prices -- but Amazon isn't. You'll notice that most of the brands that are sold on Amazon are 'no name' brands, while every other retailer has brands you know and have heard of.

It also explains why Amazon isn't passing these same costs along. Amazon wins because their cost is lower, the US loses because we lose honest American jobs and on tariff revenues.