Amazon CEO: Sellers Will Pass On Tariff Costs to Shoppers

Amazon CEO Andy Jessi said on Thursday that Amazon sellers would probably respond to President Donald Trump’s prices by raising prices for consumers.

Jesse said, “I think they (the seller) will try and approve the cost.” Cnbc In an interview

Trump imposed a 10 % tariff on all trading partners and earlier this week “at least” 145 % tariff on China that could affect consumer prices. Tariff News has put Amazon sellers in panic because most of the goods on the platform, according to each video securities, 70 % of the products come from China.

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Although sellers decide whether to increase prices or absorb tariff costs, some Amazon may respond to stockpiles before buying buyers-however, says the short-term nature of buyer’s data makes it difficult to tell if it is a long-term trend.

Jesse said, “People have not stopped buying, and in some categories, we see people buying ahead, but it’s hard to know if this is just an irregularities in the figure because it is only a few days, or how long it is,” Jess said. Cnbc.

Amazon’s marketplace consists of about 9.7 million sellers, which support 60 % sales on the platform. According to Fox’s businessMore than half of the sellers on Amazon are based in China.

Jesi told Cnbc That Amazon has purchased some “strategic” inventory and is trying to discuss the terms for some purchase orders in response to revenue. According to BloombergAmazon, after announcing Trump’s tariff plan on April 2, canceled orders for several Amazon seller’s beach chairs, scooters, air conditioners and other products in China last week.

Amazon is still spending on AI

Jesse also issued his annual shareholder letter on Thursday, which led to the outline of the reasons for spending 100 billion billions on AI this year to Amazon.

According to the letter, Jessi said that AI currently needs “enough investment”, but one day “will not be as expensive as it is today” as the price of AI chips decreases.

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