Amazon CEO Addresses Potential Tariff Impact on Customers
Amazon CEO Andy Jassy has stated that online sellers on the platform may pass on some of the costs associated with US tariffs to customers. In a recent interview with CNBC’s Andrew Ross Sorkin, Jassy expressed the company’s commitment to maintaining low prices while acknowledging the potential impact of tariffs on their business model.
Jassy noted that the current trade environment is highly fluid, making it challenging to predict the exact impact of tariffs on consumers. The US President Donald Trump recently adjusted tariff policies, pausing some while increasing others on China, a key source of Amazon’s inventory.
The Amazon CEO revealed that the company has been in communication with US officials regarding their concerns about the tariffs. Jassy emphasized Amazon’s proactive approach to addressing potential challenges, stating that the company operates like the ‘world’s largest start-up’ as it continues to innovate and streamline its operations.
Amazon has been heavily investing in artificial intelligence (AI), allocating a significant portion of its planned $100 billion capital expenditures this year to AI-related projects. This strategic focus on AI underscores the company’s commitment to innovation and its efforts to maintain a competitive edge in the rapidly evolving technology landscape.
Jassy’s comments come as Amazon navigates the complexities of the current trade environment while continuing to prioritize customer satisfaction and operational efficiency. The company’s approach to managing tariff-related costs will likely have significant implications for both sellers on the platform and consumers.
