Amazon CEO Andy Jassy says that Trump administration tariffs have started to impact prices of some items on the company's online store.

Speaking to CNBC at the World Economic Forum in Davos, Switzerland, Jassy said that the company has seen tariffs "creep into prices" charged by sellers, who have been left to decide between passing increased costs onto customers, or absorbing the costs to drive demand. Jassy added that, although Amazon has sought to keep prices as low as possible, some increases have been unavoidable.

“At a certain point, because retail is a mid-single digit operating margin business, if people’s costs go up by 10%, there aren’t a lot of places to absorb it," he explained. "You don't have endless options."

As this situation has played out, Amazon's customers have been "pretty resilient," Jassy added, and have continued to spend in spite of tariff-related price hikes. However, spending habits have also shifted, with many shoppers bargain-hunting for lower-priced alternatives to everyday products, and de-emphasizing purchases of higher-priced discretionary items.

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According to data from the Harvard Business School Pricing Lab, costs for household essentials increased substantially in 2025 compared to pre-tariff trends. That included a 5% rise in prices for cleaning supplies and toilet paper, an 8% increase for household furnishings, and a 14% hike for clothing. The Yale Budget Lab also estimates that current Trump administration tariffs will cost the average household $1,700 annually.