For months, there have been concerns about increased import taxes, which would result in high prices on a variety of goods.
While most countries are currently experiencing a 90-day pause in the global reciprocal tariffs announced by President Donald Trump last month, China continues to face rates of up to 145%, with Mexico and Canada also at 25%.
According to an earnings call held on Thursday, Amazon CEO Andy Jassy stated that the e-commerce giant has yet to see a significant impact on prices.
Jassy went on to say that the uncertain economic environment has led to a trend of people stockpiling essential items out of preparation.
Furthermore, he stated that the company remains committed to keeping prices low and that it already has a diverse range of products from a variety of sellers, making it easier than other brands to weather the tariff storm.
Jassy also does not expect all sellers to make the same decisions.
“You can bet there are things that we do not anticipate,” Jassy told the crowd.
“Another thing that people forget, when you have got 2 million plus sellers, they are not all going to end up taking the same strategy if there are higher tariffs.”
While he acknowledged that “plenty” will choose to “pass on that higher cost to consumers,” not everyone will take the same approach to mitigate the effects.
“I think when you have got larger diversity like we have, we have a better chance of some of those sellers deciding that they are going to capture share and they are not going to pass on all or any of those tariffs to customers,” the company’s president said.
“And so I think customers are going to have a better chance of what they find in variety, selection, and lower prices when they come here.”
Jassy also mentioned that Amazon has been expanding where it produces merchandise over the last six years.
This came after it had, for a “long period of time,” produced primarily in China outside of its domestic operations.
“We just thought it was prudent to do so,” he told investors.
“Those are some of the ways that we are trying to make sure that we are protecting our customers…”
WHITE HOUSE DISCUSSION
CEOs at Walmart, Target, and Best Buy have not expressed the same sentiment regarding tariff concerns.
Last month, Walmart CEO Doug McMillon, Target CEO Brian Cornell, and The Home Depot CEO Ted Decker visited the White House to speak with President Trump.
Following the meeting, which included discussions about how tariffs might affect retailers’ reliance on imported goods, each issued a similar ambiguous statement.
“We had a productive meeting with President Trump and his team and appreciated the opportunity to share our insights,” a Walmart employee said.
“We had a productive meeting with President Trump and our retail peers to discuss the path forward on trade, and we remain committed to delivering value for American consumers,” the message reads.
Home Depot described the meeting as “informative and constructive.”
HOMEGROWN HELP
Walmart CEO John Furner recently confirmed that the retailer would implement a four-step pricing strategy.
This program, known as “Grow with US,” provides free resources to thousands of small businesses in the United States.
Free training, mentoring, and retail expertise will be provided.
Economists still predict that some items will see price increases soon.
There are several reasons why coffee drinkers will face increased costs.
At least five grocery items are also expected to skyrocket.