Amazon CEO Confirms Prices Are Going Up—Here’s What’s Behind It

Amazon shoppers, brace yourselves: prices across the platform are about to climb. In a direct statement, Amazon CEO Andy Jassy confirmed that ongoing global tariffs are pushing the company—and its massive network of third-party sellers—to raise prices on everything from kitchenware to tech accessories.

Why Are Amazon Prices Going Up?

The biggest factor is the escalating trade war between the U.S. and China. Recent moves include:

• A 125% tariff on Chinese imports implemented by the U.S.
• China’s 84% retaliatory tariff on U.S. goods.

Roughly 70% of Amazon’s product catalog is sourced from China. That means Amazon and its third-party sellers, many of whom already operate on thin margins, are being hit hard. Jassy didn’t mince words, stating that sellers “don’t have 50% extra margin you can play with,” and that many will be forced to pass those costs directly to consumers.

What Is Amazon Doing to Keep Prices Competitive?

Amazon is not just standing by. Several mitigation strategies are already underway:

• Buying inventory early before tariffs take effect, locking in pre-tariff prices.
• Renegotiating seller terms to ease pricing pressure and hold prices lower.
• Reducing direct imports from China in high-impact categories like home and kitchen goods.
• Diversifying global suppliers, especially for Amazon Web Services (AWS) infrastructure.

Still, Jassy made it clear: these efforts can only go so far. Some price hikes are inevitable.

How Are Consumers Reacting?

Amazon is already seeing behavioral shifts among shoppers. According to Jassy:

• Customers are “buying ahead”—stocking up now before expected price increases.
• There’s a noticeable surge in bargain hunting.
• More users are opting for lower-priced alternatives or trading down on non-essential items.

This suggests a clear trend: people are adjusting their spending habits, becoming more cautious, and leaning into Amazon’s value-driven options and deals.

What About Amazon’s Competitors?

Other major retailers are in the same boat—but their responses vary:

• Walmart pulled its financial guidance for the quarter due to uncertainty but expects sales growth up to 4%.
• Target and Best Buy have warned of potential price hikes too.
• Analysts say Amazon may actually gain market share during this period, thanks to its deep discounting power and rapidly expanding essentials segment.

Bottom Line

Between surging tariffs, shrinking seller margins, and shifting consumer behavior, Amazon’s next chapter will be marked by higher prices—but also smarter strategies. For now, if there’s something you’ve been meaning to order, it might be wise to do it sooner rather than later.