If it seems like your Amazon cart is more expensive lately, you’re not imagining things. And according to Amazon CEO Andy Jassy, it’s likely to get worse.
After months of downplaying the impact of new trade policies, Jassy admitted in a recent interview that higher prices are becoming unavoidable.
Back in July 2025, Jassy had brushed off concerns about tariffs, telling investors it was too early to panic.
Amazon did manage to keep prices steady for a while by pre-buying inventory — essentially stocking up on goods before new taxes took effect.
That strategy allowed the e-tail giant to dodge the immediate impact of cost increases. But now the company has to restock, and at higher rates.
“You start to see some of the tariffs creep into some of the prices,” Jassy said. He noted that while some third-party sellers are eating the costs to keep sales high, many are passing those expenses directly to you.
Who actually pays for tariffs?
There’s often debate about who foots the bill for tariffs, but the data paints a clear picture.
Research from the Kiel Institute for the World Economy found that foreign exporters absorb less than 4% of the tariff burden. The remaining 96% is passed on to U.S. buyers.
In other words, when it costs more to bring products into the country, retailers — and ultimately shoppers — pay the difference.
It’s not just Amazon
Amazon isn’t the only retailer feeling the pinch. Executives from Walmart, Target and Best Buy have all issued similar warnings, noting that they can’t absorb these costs forever.
Jassy says Amazon is working with partners to keep prices as low as possible, but he was blunt about the limitations: “You don’t have endless options.”
For now, it’s a good idea to keep an eye on prices for discretionary items, as those are likely to see the biggest jumps.
Is Amazon in trouble?
The price warning comes amid a massive shake-up. Reuters reports that Amazon just confirmed 16,000 corporate job cuts, capping off a reduction of about 30,000 positions since October. It’s the largest workforce reduction in the company’s history.
Amazon is also permanently closing its remaining Fresh grocery stores and Go markets, ending a years-long experiment with brick-and-mortar retail. It’s also scrapping the Amazon One biometric payment system that let you pay with a scan of your palm.
While executives point to cutting bureaucracy, automation is the key factor at play.
The company says that advancements in artificial intelligence and robotics are changing how it operates, reducing the need for certain human roles in both corporate offices and warehouses.
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