Andy Jassy, ​​CEO of Amazon, said on Thursday that Amazon seller would probably react to President Donald Trump’s tariffs by increasing the costs for consumers.
“I think you [sellers] I will try to pass on the costs, “Jassy told CNBC In an interview.
Trump raised a 10% tariff About all trading partners and a “at least” 145% tariff Consumer prices could have an effect on China at first of this week. The tariff messages panicked Amazon sellers because the vast majority of the products on the platform as much as 70% of the products Per Wedbush Securities are estimated from China.
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While the sellers determine whether or not they need to increase prices or absorb tariff costs, some Amazon buyers could react to tariffs by being re-increased before a price increases-Jassy says that the short-term nature of buyer data is difficult to find out whether it’s a long-term trend.
“People have not stopped buying, and in certain categories we see people in advance, but it is difficult to know whether it is just an anomaly in the data because it only takes a few days or how long it will take,” said Jassy to CNBC.
Amazon CEO Andy Jassy. Photographer: Michael Nagle/Bloomberg via Getty Images
Amazon’s marketplace consists of roughly 9.7 million sellers This contributes to this at 60% of sales on the platform. Accordingly Fox businessPresent greater than half Of the highest sellers at Amazon, China has been based.
Jassy said CNBC That Amazon has made some “strategic” inventory purchases and tried to barter the terms for some orders in response to tariffs. Accordingly BloombergAmazon canceled orders for beach chairs, scooters, air-con systems and other products from quite a few Amazon sellers in China in China last week after Trump announced his tariff plan on April 2.
Amazon still spends for AI
Jassy also published his annual shareholder letter On Thursday they sketch the the explanation why Amazon will spend $ 100 billion This 12 months on AI.
According to the letter, Jassy said that AI currently needs a “considerable capital investment”, but at some point not as expensive as today “, as the prices for AI chips are falling.
Related: Andy Jassy, ​​CEO from Amazon
