At Amazon’s recent annual shareholder meeting, CEO Andy Jassy addressed concerns regarding the impact of tariffs imposed during the Trump administration. Despite warnings from other retailers about potential price increases due to these tariffs, Jassy reported that Amazon has not experienced significant changes in average selling prices or consumer spending.
During a Q&A session, Jassy reassured shareholders that demand for Amazon’s products remains strong. He stated, “We have not seen any attenuation of demand at this point. We also haven’t yet seen any meaningful average selling price increases.” While some individual sellers, particularly those based in China, have raised their prices in response to the tariffs, others have kept their prices stable. This balance has helped maintain overall price consistency on the platform.
Jassy’s comments come amid ongoing trade tensions between the U.S. and China, where tariffs on a wide range of Chinese goods have been a point of contention. Major retailers like Walmart and Target have warned their customers about possible price hikes, while Home Depot has pledged to keep prices unchanged.
Interestingly, the economic editor at Breitbart News, John Carney, has argued that the anticipated “tarrifflation” has not materialized. Carney pointed to recent inflation reports that showed no significant price increases despite the tariffs. For example, the consumer price index rose only slightly, and the producer price index even fell in April, indicating that businesses and consumers have not felt the expected financial strain from the tariffs.
In a related matter, Amazon faced criticism from the White House over its plan to list tariff charges for certain products sold on its Amazon Haul site. This site focuses on items priced under $20, many of which are sourced from China. The plan was labeled a “hostile and political act” by White House Press Secretary Karoline Leavitt. President Trump even reached out to Amazon founder Jeff Bezos to resolve the situation quickly.
Overall, Jassy’s remarks suggest that Amazon has managed to maintain its position in the market despite the challenges posed by international trade disputes. The company’s extensive network of sellers and its strong presence in e-commerce may be key factors in its ability to withstand these economic pressures.