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Amazon CEO Jassy Says Tariffs Have Started To 'Creep' Into Prices (cnbc.com) 104

Amazon CEO Andy Jassy said President Donald Trump's sweeping tariffs are starting to be reflected in the price of some items, as sellers weigh how to absorb the shock of the added costs. From a report: Amazon and many of its third-party merchants pre-purchased inventory to try to get ahead of the tariffs and keep prices low for customers, but most of that supply ran out last fall, Jassy said in a Tuesday interview with CNBC's Becky Quick at the World Economic Forum in Davos, Switzerland.

"So you start to see some of the tariffs creep into some of the prices, some of the items, and you see some sellers are deciding that they're passing on those higher costs to consumers in the form of higher prices, some are deciding that they'll absorb it to drive demand and some are doing something in between," Jassy said. "I think you're starting to see more of that impact." The comments are a notable shift from last year, when Jassy said Amazon hadn't seen "prices appreciably go up" a few months after Trump announced wide-ranging tariffs.
Further reading: Americans Are the Ones Paying for Tariffs, Study Finds: Americans, not foreigners, are bearing almost the entire cost of U.S. tariffs, according to new research that contradicts a key claim by President Trump and suggests he might have a weaker hand in a reemerging trade war with Europe.

[...] The new research, published Monday by the Kiel Institute for the World Economy, a well-regarded German think tank, suggests that the impact of tariffs is likely to show up over time in the form of higher U.S. consumer prices. [...] By analyzing $4 trillion of shipments between January 2024 and November 2025, the Kiel Institute researchers found that foreign exporters absorbed only about 4% of the burden of last year's U.S. tariff increases by lowering their prices, while American consumers and importers absorbed 96%.

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Amazon CEO Jassy Says Tariffs Have Started To 'Creep' Into Prices

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  • by Buchenskjoll ( 762354 ) on Tuesday January 20, 2026 @10:46AM (#65936976)
    The best analogy, I've seen for tariffs is: "I buy a lot from the local pizza place, they don't buy anything from me. Now I'll start paying 10% more until they learn".
    • by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Tuesday January 20, 2026 @10:58AM (#65937002) Homepage Journal

      Moreover, not all tariffs are created the same.

      If the tariff fees are spent developing business in your country, i.e. subsidies for industries which are underrepresented, then they might do long-term good.

      If the tariff fees go into the pockets of the wealthy because they are instituted in order to pay for a massive tax break for the rich, and those wealthy people do not spend them creating jobs in those industries, they certainly will not improve the economic system in your country.

      For anyone out there still confused, we're on the latter plan here. Tariffs aren't automatically bad, even though they usually are, but these tariffs are provably not improving anything for The People.

      • by gtall ( 79522 )

        There's another issue with tax cuts for the rich, this isn't 1964 when Kennedy tried it with sky high taxes. The increase in wealth of the rich isn't as great in percentage to what they already own or make. Plus, there's no guarantee the rich are going to spend whatever windfall in the country instituting the tax cuts. Markets are now so globalized there a good chance the money will get invested elsewhere. The rich that are greedy will always chase the highest returns.

        • Yes absolutely, I am completely against those cuts. I'm speaking only about the tariffs. Trump's tariffs are bad because they are intended to be bad. But if those tax cuts exist, no matter how we pay for them, the poor will wind up paying and not the rich. That's the whole point of the cuts. Even if everything about tariffs was great, and let me be clear that I do not believe that, the tax cuts would still be bad.

      • by gurps_npc ( 621217 ) on Tuesday January 20, 2026 @11:55AM (#65937190) Homepage

        The first part of your analysis is true.

        But Tariffs ARE automatically bad.

        Tariffs always:
        1) Tax the poor people not the wealthy. The wealthy save their earnings and travel outside the country (where they can buy things without those tariffs) while the poor spend all their earnings and rarely travel.
        2) Make things more expensive in your country compared to outside of it. Hurts both the consumer and the industries buying raw materials.
        3) Encourage you to buy expensive local products instead of cheaper foreign products. This is anti-Capitalism, creating bad jobs in your country and hurting good workers outside of it.

        • Bingo, the truth about tariffs is they are tool but the honest answer is they are economically damaging but the case to make is to accept that damage for matters of economic or national security, the damage is worth it.

          Like the tariffs against Chinese EV's, the honest answer is it is straight up protectionism for the US automakers. That is actually OK if we are honest with ourselves and understood that we value the industry and the tariffs are taking a short term hurt to allow the industry time to build up

          • by 93 Escort Wagon ( 326346 ) on Tuesday January 20, 2026 @12:19PM (#65937242)

            Well, except for the fact that Trump is very anti-EV in the first place... he wants American EVs to die. So the tariffs against Chinese EVs aren't implemented with the goal of actually protecting anything domestic, they're just capriciously punitive.

            • That is true, I was thinking more about the reason they were kept in place while Biden was in office.

              There's also the fact that implementing tariffs is way easier then rescinding them as now other countries may have countered and it all has to be negotiated.

              It's like starting and quitting smoking, one of them is easier. One of them is way easier.

              • by ukoda ( 537183 )
                I recall when trump claimed to have completed trade deals with 200 countries, when in reality it is more like 4. Seams like no one wants to call him out on that and we all pretend he never said that.

                The core failure is the USA over estimated how important it was to world trade. With only around 10 to 20% of the world's trade, depending on who's numbers you use, the reset of the world has put the USA in the too hard basket and refocused their trade to with more stable countries.
                • Hell I think the number is actually zero technically, most of what i've seen are framework deals and MOUs really "trade agreements" are supposed to be ratified by Congress like Trump's own USMCA deal was so by that metric the number is still zero.

                  What people didn't want to recognize is a lot of our important with trade was we were the largest importer of goods in the world and we basically cut our own dicks off to spite our face.

        • History has proven tariffs are bad. https://en.wikipedia.org/wiki/... [wikipedia.org]

          • Another example is the "Chicken Tax" (https://en.wikipedia.org/wiki/Chicken_tax) from the 1960's, that's still in force today. It's what prevents importing small/light trucks from Europe, so we can't have the Toyota Hilux and similar useful vehicles (which American manufactures only grudging produce a few examples of).

            • Two examples (yours and the one in the GP comment) of obviously bad tariffs don't prove that tariffs are bad. They prove only that not all tariffs are good, but nobody was arguing that, so it's useful only for making a straw man argument.

              As an aside, not relevant to the argument really but of relevance since you brought it up: The Chicken Tax also doesn't prevent us from having anything because it's easily circumvented. To avoid the tax, manufacturers ship the vehicle slightly unfinished and do final assemb

              • by dgatwood ( 11270 ) on Tuesday January 20, 2026 @05:43PM (#65938224) Homepage Journal

                America used to be funded with tariffs and it worked fine. Nobody is happy with paying taxes no matter what kind or where the money comes from. Everyone has to pay a share of them, no matter what kind of taxes you have. Costs are passed on to customers whether you they are import or export tariffs, or corporate taxes.

                True, though there is one way to effectively tax business income without taxing consumers, and that is to raise taxes on capital gains and dividends. If capital gains and qualified dividends were taxed as ordinary income beyond some reasonable threshold (say $200k per year), it would have basically zero impact on the poor and middle class, but would massively increase government revenue from the ultra-wealthy.

                • I'm not sure even that is true, I don't think the owning class would just give up on their take home pay and they would still raise prices.

                  • by dgatwood ( 11270 )

                    I'm not sure even that is true, I don't think the owning class would just give up on their take home pay and they would still raise prices.

                    That's the thing about separation of authority. The people getting taxed aren't the ones making the decisions, and the ones making the decisions have a fiduciary duty to the company, not the shareholders, which would generally preclude raising prices, or else they likely already would have done so.

                    • That's the thing about competition. As long as it exists, there are competitive pressures which limit the tendency.

                      Pretty sure 2/4 of the items in my dinner are owned by Unilever

        • Sometimes it's better to spend more on a local product when it keeps a defense-critical industry alive, and/or when it keeps jobs in your country that are critical to your national prosperity. What you said about them being anti-capitalism is also not a real objection. Allowing capital to control the means of production is EXACTLY how we wound up exporting so many jobs to China that it has harmed our country economically. Worshipping capitalism is empty headed celebration of the destruction of everything we

          • by ceoyoyo ( 59147 )

            This argument is one of those capitalism but not approaches that never really work very well but seem to be very popular in the US.

            If an industry is important for national security then just subsidize that industry. That happens a lot. It's why defence contracts are so expensive.

            If the goal is to protect "national prosperity" then forcing your consumers to pay more and making your producers less competitive is not a great way to do it. It's much better to cede industries where you can't compete and develop

            • "If an industry is important for national security then just subsidize that industry."

              That's literally what I said, you have to spend the money subsidizing that industry. Thanks for your support.

              • by ceoyoyo ( 59147 )

                Sometimes it's better to spend more on a local product when it keeps a defense-critical industry alive, and/or when it keeps jobs in your country that are critical to your national prosperity.

                Ah, I thought you were suggesting that taxing consumers was a good way to support critical industries. Instead you were proposing the government paying them to maintain capabilities (subsidizing). Clearly I misunderstood your statement.

        • by dskoll ( 99328 )

          I would say: Tariffs are almost always automatically bad. The only IMO valid use of tariffs is when a foreign country is dumping goods or services on you below cost in order to destroy your domestic industry. Which is actually the business model of a lot of Internet companies, actually... get the people hooked on cheap or free producs/services and then when there's no competition, raise prices.

          • e.g. Aliexpress' enormously subsidized shipping. I would buy through an American middleman except the only place to get the same shit without massive markup is from Jeff Bezos, and fuck him.

      • by mjwx ( 966435 )

        Moreover, not all tariffs are created the same.

        If the tariff fees are spent developing business in your country, i.e. subsidies for industries which are underrepresented, then they might do long-term good.

        If the tariff fees go into the pockets of the wealthy because they are instituted in order to pay for a massive tax break for the rich, and those wealthy people do not spend them creating jobs in those industries, they certainly will not improve the economic system in your country.

        For anyone out there still confused, we're on the latter plan here. Tariffs aren't automatically bad, even though they usually are, but these tariffs are provably not improving anything for The People.

        99 times out of 100 it doesn't do anything to help local industry. All it does is make everything more expensive (as it also removes the impetus to local industry to compete) and reduces consumer choice. Even if you're putting in tariffs and import restrictions to help a local industry, they almost never compensate for the amount that the subsidies are costing (I.E. the now dead Australian car industry). Subsidies only make sense on an economic level if you're a mass exporter, meaning you're making money by

        • 99 times out of 100 it doesn't do anything to help local industry.

          Agreed. That's usually not the goal. It's usually just about revenue production.

          All it does is make everything more expensive (as it also removes the impetus to local industry to compete)

          That's true as long as you don't enforce antitrust law, like we don't any more. If we did, there would be domestic competition.

          If it takes £5 to make a spanner in the UK but you can buy a Chinese made spanner for £2, adding a £5 tariff to the Chinese spanner will not result in them being made in the UK... it just means that a Chinese spanner is now £7

          But we do make spanners in the US. I can still buy an adjustable one from Crescent, who invented the best design for them, and they are still made here.

          What we don't make here any more is a complete suite of electronics parts, so in a sudden and protracted war we'd be reduced to the fucking iron age in s

          • by mjwx ( 966435 )

            That's true as long as you don't enforce antitrust law, like we don't any more. If we did, there would be domestic competition.

            Even if you enforce anti-trust laws, you still end up in a situation where competition is being artificially stifled by artificially high prices. So local manufacturers are in a position where they don't need to offer a better product, they just need to offer a bad product at just below the artificially inflated prices for bad imported products. Cars are a good example. Australia used to make it's own cars, it made 3 models of terrible barges that couldn't be exported because they were too low tech and poo

    • by jbarr ( 2233 )

      The best analogy, I've seen for tariffs is:
      "I buy a lot from the local pizza place, they don't buy anything from me. Now I'll start paying 10% more until they learn".

      The intent was, "A pizza place just opened close to me that locally sources its ingredients, my kid works there now, and I can buy their pizza for less than it costs me to buy pizza from the place across town." Putting this into practice takes time, is risky, and the actual results are still unknown.

      • Regardless of intent, Trump won't be in power for much longer and when he's gone, most businesses feel that saner heads will prevail and this whole tariff nonsense will disappear. If SCOTUS or Congress grows a backbone, maybe sooner.

        The boards of companies may say things to placate Trump in the meantime, but they aren't going to do anything serious as long as they are of the opinion that they can ride out the short term effects. They are responsible to their shareholders to act in the best company interest

        • And then... (Score:5, Informative)

          by Epeeist ( 2682 ) on Tuesday January 20, 2026 @11:24AM (#65937060) Homepage

          most businesses feel that saner heads will prevail

          And then people look at Vance, Hegseth, and Miller amongst others. Trump may go away, but that doesn't mean that MAGA and Project 2025 will.

          • The hope is that MAGA's will see those people as 'lightweights", and reject them. It seems like a cult of personality around one person, and not a 'movement' at all.
            • by ukoda ( 537183 )
              One can hope but from the outside looking in it would appear very few US voters look at the bigger picture and instead focus very much on their own personal desires for the short term. So US politicians simply promise that, it is not like they ever have to deliver, apparently all they have to do is blame someone else for their failures to deliver and they can expect to get voted in again using the same lies.
          • Re:And then... (Score:4, Interesting)

            by hierofalcon ( 1233282 ) on Tuesday January 20, 2026 @11:36AM (#65937116)

            I suspect that Vance will be tarnished with Trump's choices in much the same way that Harris was tarnished with Biden's choices. It's far too early to tell for sure, but the independents which helped Trump eek out an electoral victory seem to be pretty solidly against the Republican party at the moment. It's not just saner heads among the politicians, but among the voters. Maybe I'm too hopeful...

        • by gtall ( 79522 )

          At what point does the country's interest become the company's interest? If el Bunko drives the U.S. into the ditch, and he's working on it, those companies go down with the ox cart. And the Americans they employ go down with the cart.

        • >Trump won't be in power for much longer and when he's gone,

          yeah buddy. I have news for you. This was only year one.
          And the way it's going, I seriously wonder if there are going to be elections because Mein Trumpfer declares a war and a national emergency to extend it, and so his patsies will keep doing it.
          Democracy is about over in the US.

          You think people in '33 thought: Oh he's going to be here forever? Nope, they thought it was temporary, at worst. And it would soon pass...

          • And the way it's going, I seriously wonder if there are going to be elections because Mein Trumpfer declares a war and a national emergency to extend it, and so his patsies will keep doing it.

            A president has no authority to cancel elections. The Constitution states elections lie with the states. There has never been a time in this country where an election was cancelled because of war or national emergency.

            He can bloviate out of his second ass all he wants, but elections will go on with or witho
            • by Pascoea ( 968200 )

              There has never been a time in this country where an election was cancelled because of war or national emergency.

              Not yet, anyway. Living in near Minneapolis has made the whole "manufacture a national emergency" thing feel a lot more real for me.

              He can bloviate out of his second ass all he wants, but elections will go on with or without him.

              I still share your optimism. However the "but, maybe" voice in the back of my head has been getting louder.

            • by shilly ( 142940 )

              Insurrection Act, ICE at polling stations, straight up cheating if you’re unscrupulous and dead set on keeping your hands on power, and you have access to large amounts of power and no-one is standing in your way, quite a lot becomes possible.

            • by Local ID10T ( 790134 ) <ID10T.L.USER@gmail.com> on Tuesday January 20, 2026 @05:51PM (#65938252) Homepage

              A president has no authority to ...

              That has not stopped Trump yet. He has done many things that he lacks legal authority to do. As long as he can get a lawyer to make -any- legal argument for what he does, the result is court cases that take months to resolve. Some he wins, most he loses, all are (wholly or partially) moot by the time the case is adjudicated -in the mean time, he gets to do as he will.

              He leads. As long as those who follow continue to do as he says, legal authority is irrelevant. This is why he puts such an emphasis on personal loyalty to him.

              TLDR: Whataya gonna do about it?

        • It won't be saner heads unless someone more electable is presented.

          Its still too early in the cycle for anyone to put their head up. Anyone doing so becomes a target for a bully and the bully's (forced) friends.

          Scenario 1 - MAGA nuts romp it in in the midterms: Everyone jockeys to be more important #2 banana. Unless the opposition can come up with a galvanising, charismatic alternative ... crickets.
          Scenario 2 - A few seats change hands in the midterms, but not a wholesale rejection - anyone with the resourc

        • It may not take much longer. The greenland thing is well, just bat shit crazy. And it may be a real red line for the EU. To the point of war. I could certainly see it driving the EU into China and away from the US. How many times can you bitch slap a friend before they tell you to FO? I think the EU is at the FO point. And once that friend has told you to FO, they don't come back. They find other friends.
          • by ukoda ( 537183 )
            Well put. I think those of outside of the USA have already been quietly talking together for quite some time about how things will work without the USA, but are not being public about it so as to delay and soften the blow from the loss of a once close friend.
            • by djinn6 ( 1868030 )

              They're hoping the next president basically undoes everything, which is a totally reasonable bet. If they tear down the mask today, it'll be much harder to rekindle relations.

              • by ukoda ( 537183 )
                Yes, a more sane next president would see some return to normalcy, but it could be decades before anyone ever really trusts the USA again because USA is now known to only ever be one election cycle away from becoming a dumpster fire again.

                The only way to shorten that trust time would be to make changes to the democratic system to bring it inline with the higher quality democracies in other countries that better reflect the will of the people and stop one clown from having total control.
              • That may have been reasonable after one term of trump. But after re-electing him again, I imagine everyone is assuming the US is not a trustworthy ally. Frankly I expect the EU trusts China now more than the US. And trust may be the wrong word. The behavior of China is more reliable. Schizo US, I mean what do you do with a partner that may slap you one minute and kiss you the next? In a word, divorce.
      • by gtall ( 79522 )

        Another feature is that to keep those local sources profitable, you must keep the tariffs on.

        Pizza is not a good example. There are myriad small businesses who built their products on cheap-in-price stuff from China. Now they must raise their prices because, being small businesses, they cannot absorb those extra fees. A lot of those small business are exiting. You can see this in the labor stats. Small business hire much more than large businesses across the economy. And hiring has actually decreased for sm

    • by Ogive17 ( 691899 ) on Tuesday January 20, 2026 @11:06AM (#65937016)
      My company has some products build in China and sold in the US. At the beginning we were eating most of the costs but with the situation evolving frequently, we switched to a policy that we'll only produce if the customer agrees to pay the tariffs, whatever they may be, when the product arrives.

      We have specialized production facilities all over the world.. so what is produced in China is a unique product and sold globally, the same for the products we produce in the US and sell globally. I understand the mentality to build where you sell but it just isn't economically feasible for everything. Manufacturing facilities must be built to specialize in a certain thing, flexibility typically comes with higher costs.
      • Elasticity of supply and demand. Tax cigarettes and the consumer pays the tax because they're addicted. Tax apples and people will buy oranges instead, so the producer pays the tax. Everything else is somewhere in between.

        So if you raise your prices and people keep buying, then your prices were too low.

    • by King_TJ ( 85913 )

      I'm not sure this analogy is completely accurate (but generally not bad). I think a better representation of reality in America would be, "I buy a lot from the pizza places that sell this great, imported pizza. They don't really buy anything from me. I'll let government throw an extra 10% tax on imported pizza because they're trying to get people like me to buy more locally made pizza instead."

      Of course, as we all know -- the "locally made pizza" in this analogy is sometimes impossible to find, or requires

  • by rsilvergun ( 571051 ) on Tuesday January 20, 2026 @10:52AM (#65936990)
    So high interest rates are designed to cause layoffs. That's because companies don't keep any cash on hand unless they are very very profitable and companies like that ear mark that cash for stock buy backs.

    This means every company in America is perpetually on the verge of collapse due to a cash crunch and the first thing they do when they run into problems is try to borrow some money. If interest rates are too high the borrow they start firing people. That's you.

    Right now interest rates are set high by the Federal reserve in order to keep inflation under control. Basically the Federal reserve is triggering layoffs through high interest rates in order to force less spending and lower wages.

    Tariffs are designed to raise prices. That's just what they do. The goal of the tariff is to increase prices on imported goods so you buy local goods. The problem is nobody is going to make locally in America because other countries have little or no environmental regulations and borderline slave labor. You can't compete with 10,000 Bangladeshi stuffed into a locked building without a fire escape working 70 hours a week for just enough money to buy food and drinking contaminated water downstream of a chemical plant.

    And I think it should be painfully obvious that you don't want to compete with those Bangladeshi...

    If you're worried about your job you can thank Trump and you can thank his tariffs. On the other hand Trump has apparently been redirecting the tariff money into a slush fund he can use for whatever he wants. So there is that.
    • by Sique ( 173459 ) on Tuesday January 20, 2026 @11:32AM (#65937098) Homepage

      Tariffs are designed to raise prices. That's just what they do. The goal of the tariff is to increase prices on imported goods so you buy local goods. The problem is nobody is going to make locally in America because other countries have little or no environmental regulations and borderline slave labor.

      That's simply wrong. Switzerland would be a counter example. Germany would be a counter example. Canada would be a counter example - all countries Donald Trump has tried to punish with high tariffs because they export more to the U.S. than vice versa (and he totally ignored services, which are not counted as "exported").

      You may restate your argument as soon as the environmental protection and the average wage in the U.S. actually exceeds that of Switzerland.

      • Well I think you are assigning the wrong reason for trump tariffs on those countries. It is revenge. Otherwise how to explain the tariff on Brazil? https://usafacts.org/answers/w... [usafacts.org] ? It is all about what he wants and punishes with tariffs. It is his bully stick. He acts like a 3 year old smacking kids around on the playground.
        • by Sique ( 173459 )
          I don't. Donald Trump as tried to wield tariffs as a method of extortion and blackmail, hoping that the economy in the U.S. is strong enough to survive better than the opponent. I just pointed out that the previous poster has fallen for a fallacy that was sold to him by propagandists, that the tariffs are all about evening out the economic playing field.
          • Agree up to "survive better than the opponent". Nope Donald is all about Donald. Specifically Donald. He couldn't give a rats ass about any other US citizen, well except maybe his own offspring. Maybe. Donald even said it with regard to the Nobel. He was getting even with the Scandinavians. Pure and simple revenge. If you frame all his actions revenge fits nearly everything.
  • by Sebby ( 238625 ) on Tuesday January 20, 2026 @11:06AM (#65937014) Journal

    ...and that's to show how much of the final price is actually tariffs.

    Suck it up Bezos/Jassy, grow a spine and tell people the truth that they're getting fleeced by Trump & his "administration".

  • Hold on, Hold on. Hold on. The tariffs are paid by the other countries. (oh lord) My president said so.
    • Just like other countries pay for border walls!

      • by ukoda ( 537183 )
        Hey he is doing much better on the border wall in his second term. It was all the media talked about in his first term yet in his second I have seen zero media reports about how much more of the border wall has been completed. I have no idea if nothing has been built, or if it has been finished.
  • I learned what a tariff was in middle school. MAGA was too fucking dumb and believed that somehow the other country paid the tariffs.

    Republicans, Donald Trump raised all our taxes. What are your thoughts on Hillary’s emails?

    • My thoughts on Hillary's e-mails are the same as the classified document stash of Trump - or whoever has them now.

  • Tariffs are always and everywhere good. No one has better tariffs. There are no price increases. Prices have come down. Got it?

    If Jassy doesn’t get on-script by the end of the day, he is toast.

    No deviations from this world-view are allowed.

    I’m shocked he could make such a juvenile error, actually. It definitely calls his judgement into question.

  • Why do those words fall together so comfortably and effortlessly?

  • offshoring manufacturing, ala clinton/kissinger, should be treated as treason.

    what was done to intentionally destroy this country in the interest of international businesses has been so catastrophic that everyone involved should be hanged and any money by those tangentially involved should be seized.

    • by ukoda ( 537183 )
      Sure, you guys try that. Popcorn sales will surge in the rest of world while we watch how that works out for you.

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