Amazon CEO Andy Jassy told CNBC last month that shoppers are 'starting to see more of that impact' as the Trump administration's 10% tariffs begin filtering into prices on Amazon's marketplace. This marks a shift from Amazon and many third-party sellers' earlier strategy of buying inventory ahead of time to limit tariff effects. As those supplies run out, tariff costs are now appearing in prices across Amazon's vast platform, which carries hundreds of millions of items from about 2 million sellers.

Sellers are responding by either passing higher costs onto consumers through increased prices or absorbing them to maintain demand. Jassy emphasized the difficulty of absorbing rising costs in retail, noting the sector operates on thin margins, leaving limited room to absorb a 10% cost increase without impacting prices. He acknowledged consumers are adjusting their spending habits, trading down to cheaper options and showing more hesitation on discretionary purchases, though overall spending remains resilient.

The CEO stressed Amazon's ongoing focus on keeping prices low despite these economic pressures and trade uncertainties.