Tariffs are starting to drive up prices on Amazon, according to CEO Andy Jassy.
Shoppers are already shifting toward cheaper brands and bargain hunting.
Amazon says it’s working to keep costs down, but consumers may feel the pinch in the coming months.
Amazon’s CEO has delivered a candid message to shoppers: don’t expect prices to stay as low as they’ve been.
In a recent interview at the World Economic Forum in Davos, Switzerland, Amazon CEO Andy Jassy said that the effects of U.S. tariff policy — particularly tariffs imposed last year under the Trump administration — are finally showing up in the prices you see on the site.
What’s changed?
In the interview with CNBC, Jassy said that Amazon and many of the millions of third-party sellers who list goods on its marketplace worked to plan ahead in preparation of the impact of the tariffs. He explained that they stockpiled products ahead of the tariff increases in 2025, which served as a buffer, and allowed merchants to sell items without having to raise prices for shoppers.
However, those supplies have largely run out, and new inventory now carries the full tariff burden. This means that sellers are facing a tough choice: Do they absorb the added cost in the hopes of driving demand? Do they pass it off to shoppers? A mix of both?
"We have so many items—we have hundreds of millions of items—and we two million sellers, many of whom are willing to pursue different strategies in how they price," Jassy said in the interview. "Amazon consumers, overall, have fared well, but we’ll have to see what happens in 2026."
Higher prices on the horizon?
Because the pre-tariff planning strategies have run out, Jassy said it's not unlikely for consumers to start seeing price hikes on items across Amazon's marketplace.
"We’re trying to work with our distribution partners and selling partners to try to keep prices as low as possible for consumers," he said in the interview. "That is our focus and it has always been our focus, but especially in times with uncertain economies or changes in trade —our priority is to try to figure out how to keep prices as low as possible."
Jassy explained that because of the low profit margin associated with retail, there aren't many ways for sellers to absorb the added costs associated with tariffs, and ultimately, there aren't "endless options."
Is this affecting consumer behavior?
The short answer: yes and now.
Jassy said that consumers are "resilient," as they continue to shop. However, their choices when shopping have been different.
"I think that wherever they can, [consumers] are trying to trade down in price," Jassy said in the interview. They're looking for bargains wherever they can find [them]."
One of the biggest changes Jassy has seen: hesitancy around higher-price discretionary items."
What this means for you
Here’s what consumers should know as these shifts unfold:
Expect higher prices on some items. With tariffs increasingly reflected in costs, especially on imported goods like electronics and apparel, it’s realistic to see price tags increase on things you buy regularly.
Look for deals and generic options. If full-price name brands become less attractive, opting for no-name or budget alternatives can stretch your budget further.
Don’t panic over every item — but watch trends. Amazon is trying to hold prices down where possible, and not all products will jump in cost. But overall retail pricing pressure through 2026 is something many shoppers will feel.