Are Donald Trump’s Tariffs to Blame for The Prices Rising on Amazon? – CEO Responds

You might have noticed in the past few weeks that prices of some goods on Amazon have suddenly gone up. Well, that might not be an accidental increase, as many shoppers have noticed that Amazon products seem more expensive than before.

Now, while e-commerce prices rarely move in isolation, the debate over rising costs has focused on trade policy, especially the tariffs introduced by United States President Donald Trump. Tariffs are basically taxes on imports made to protect domestic industries and generate government revenue, but they can also raise costs for retailers and consumers.

Amazon, the largest online marketplace in the world, is naturally affected by this. It operates a huge network of warehouses and thousands of third-party sellers, many of whom import goods from overseas. In 2025 and into 2026, Amazon’s leadership has already acknowledged that the tariff regime has begun to influence prices on its platform, a change that has caused criticism from politicians.

What Happened Between Amazon and Donald Trump Over Tariffs

Now, this story of tariffs and Amazon dates back to April 2025, when reports surfaced that the company was considering showing customers how much of a product’s price was attributable to US tariffs.

The idea here was simple: alongside the usual price tag on certain products, Amazon planned to show the additional amount charged due to tariffs on imported goods. That proposed move drew a strong reaction from the Trump White House.

According to reports, President Donald Trump made what was described as a heated call to Amazon founder Jeff Bezos to complain about the plan and its potential to have political implications. Trump later characterised the conversation as positive, saying that Bezos had ‘solved the problem very quickly,’ and praised him as a ‘good guy.’ Also, at the time, the White House press secretary publicly called the idea a ‘hostile and political act.’

Moreover, the tariffs themselves were very impactful. The Trump administration imposed a reported 145% tariff on a range of goods imported from China and a baseline 10% tariff on imports from most other countries. These were far higher and more comprehensive than tariffs in previous years, affecting a huge volume of products that Amazon and other retailers rely on for inventory.

In response to this policy, Amazon and many of its third-party sellers accelerated shipments of inventory into the U.S. early in 2025 to avoid increases in import costs and keep prices stable for customers. That forward-buying strategy masked the impact of tariffs till now, it seems, with many items stocked well before the new tax regime fully took effect.

Furthermore, studies have also pointed to a larger price impact from Trump’s tariff policy beyond Amazon. Research tracking tens of thousands of items found that China-origin products on Amazon rose around 2.6% in price from January to mid-June 2025, compared with more modest inflation in core goods generally. This, in a way, implies that tariffs were beginning to filter through to consumer costs in measurable ways.

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What Amazon’s CEO Has Now Said About Tariffs and Rising Prices

Now, things are changing. In January 2026, Andy Jassy admitted publicly that tariffs are starting to have a tangible effect on the prices consumers see on Amazon. In an interview with CNBC at the World Economic Forum in Davos, Jassy said the stockpiled inventory that Amazon and many of its third-party sellers had built up ran out in the autumn. With that buffer gone, the extra costs from tariffs have begun to ‘creep’ into some product prices, he explained. Some sellers are choosing to absorb the higher costs themselves to remain competitive, while others are passing them on to customers through higher sale prices.

Moreover, Jassy was careful to describe the situation as a complex mix of factors, noting that Amazon remains committed to keeping prices as low as possible but cannot absorb indefinite increases. He noted that retail typically functions on relatively thin profit margins, so sustained cost increases from things like tariffs will eventually show up at the checkout.

Furthermore, economic research mostly supports this view. A Harvard-linked study found that tariffs imposed in 2025 helped increase the US Consumer Price Index by about 0.7%, mainly because companies and consumers ultimately bear most of the tariff costs rather than foreign exporters. But it is important to point out that tariffs are not the only cause of price rises. Global supply chain disruptions, shipping costs, inflationary pressures and demand changes all play a role in the pricing method.

Originally published on IBTimes UK