Amazon CEO Andy Jassy: Trump Tariffs Are Driving Up Product Prices in 2026

The era of tariff-shielded pricing is over. On January 20, 2026, Amazon CEO Andy Jassy confirmed that consumers are starting to feel the weight of President Donald Trump’s tariffs as sellers begin passing on higher costs.

Amazon Andy Jassy tariff impact 2026

Speaking with CNBC, Jassy revealed that while Amazon and its third-party sellers had aggressively stocked up on inventory to delay price hikes, those reserves ran out late last fall. "You start to see some of the tariffs creep into some of the prices," Jassy noted, adding that some sellers are now choosing to pass these expenses to consumers to maintain viability.

The retail giant operates on mid-single digit operating margins, leaving little room to absorb a 10% spike in costs. This marks a significant shift in tone from a year ago, when Jassy initially suggested that prices remained stable despite the tariff announcements.

Consumer Resilience and Bargain Hunting

Despite the rising tags, Jassy described shoppers as "pretty resilient." However, a clear shift in behavior is emerging. Shoppers are increasingly migrating toward cheaper alternatives and engaging in bargain hunting while delaying premium discretionary purchases. This trend suggests that while consumption continues, the composition of the average shopping cart is changing toward value-oriented goods.