Andy Jassy, the CEO of Amazon, acknowledges that the platform is now experiencing the impact of Trump’s tariff wall policy. Following decisions by sub-vendors to increase prices, even though it means passing on the added cost burden to customers.
Amazon is actively trying to mitigate these impacts by, for example, aggressively purchasing excess product stock in advance or negotiating new terms with suppliers. Additionally, many orders from China have been canceled abruptly, leaving some suppliers ready to ship goods to the docks only to have them canceled internally.
On the customer side, there is a trend of rushing to purchase and hoard certain items in anticipation of future price increases. Amazon notes that while this behavior may be a long-term pattern or simply a short-term trend, it is happening too quickly to accurately determine.
Moreover, Trump’s import taxes could also raise the cost of building AI infrastructure, such as data centers that Amazon heavily invests in through AWS (Amazon Web Services). However, Jassy states that Amazon has been diversifying its supply chain for the past 5 years, not relying solely on one country, and has no plans to slow down data center construction.
Source: CNBC
TLDR: Amazon faces repercussions from Trump’s tariff policies, prompting actions to mitigate impacts on pricing and supply chain diversification.
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