Amazon CEO on tariff impacts: Company 'better positioned' than competitors
Amazon shoppers will likely stick with the global retailing giant amid President Trump's tariff war because the retailer is better positioned to keep supplies up and prices low, CEO Andy Jassy says.
Amazon CEO Andy Jassy wants to assure customers the global online retailer is doing all it can to keep prices down – and supply levels up – amid tariff turmoil.
Still, he admits, the situation is uncertain. "Obviously, none of us knows exactly where tariffs will settle or when." Jassy said May 1 during a conference call discussing Amazon's first-quarter financial performance.
However, the company had not seen shopper demand dip nor has it seen the average price of products "appreciably go up yet," he said. But there are signs of heightened buying by customers "in certain categories that may indicate stocking up in advance of any potential tariff impact."
Amazon and its third-party sellers did some "forward buying" of products, too, which is helping the fact that "most sellers just haven't changed pricing yet," Jassy said. "Again, this could change depending on where tariffs settle."
Still, Jassy thinks Amazon, with its wide variety of sellers and products, is "often better able to weather challenging conditions better than others," likely referring to competitors such as Walmart and Target, which met with Trump on April 21 to discuss tariffs.
He compared the tariff uncertainty to the uncertainties that buffeted supply chains during the COVID-19 pandemic. "When there are periods of discontinuity...when you have the broadest selection like we do and two million plus sellers, like we do, you're better positioned to help customers find whatever items matter to them at lower price points than elsewhere," said the CEO, who took over for Jeff Bezos in 2021.
Amazon reported total revenue of $155.7 billion for the first quarter, which ended March 31, up more than 8% over the previous year, and surpassed analysts' estimate of $155.04 billion, according to data compiled by LSEG. Its forecast for sales of $159 billion to $164 billion during the current quarter (April-June) also surpassed analysts' estimates – a sign that Amazon is confident in its ability to navigate the shifting tariff situation.
President Donald Trump has said tariffs will likely impact shoppers, saying in an April 30 Cabinet meeting that tariffs could lead to fewer, but more expensive gifts this upcoming holiday season. "Well, maybe the children will have two dolls instead of 30 dolls. And maybe the two dolls will cost a couple bucks more than they would normally.”
Amazon and the White House trade words in tariff pricing tiff
Amazon and the White House had a showdown over tariffs earlier in the week. After PunchBowl News reported that Amazon would soon start displaying the added costs from wide-ranging tariffs imposed by Trump on its retail site, White House press secretary Karoline Leavitt called the plan "a hostile and political act by Amazon."
Subsequently, Amazon refuted the PunchBowl News report, which had cited an unnamed source familiar with Amazon's plans. "This was never approved and is not going to happen," Amazon spokeswoman Rachael Lighty told Paste BN in a statement.
Despite Jassy's pronouncements during the conference call, there are signs that some prices for products on Amazon have gone up in the three weeks since Trump's announced additional tariffs on what he dubbed Liberation Day (April 2), according to MoffettNathanson Research.
The equity research firm conducted a sample on 50 products and found Amazon prices had risen 4.2% higher on April 25. Amazon also had a 10% out-of-stock rate on those products on April 25, the firm said. Walmart and Wayfair had risen prices 2% and 1.3% on those products, respectively; Walmart had a 20% out of stock rate, while Wayfair had 2%, the firm found.
Amazon CEO: Retailer could gain market share during tariff turmoil
Also, during uncertain environments, Jassy said, "customers tend to choose the provider they trust most. Given our really broad selection, low pricing and speedy delivery, we have emerged from these uncertain eras with more relative market segment share than we started and are better set up for the future. I'm optimistic this could happen again."
Amazon and Apple, which also released financial results on May 1, added references to "trade" in the boilerplate of the financial guidance (Amazon) and forward looking statements (Apple) that wasn’t mentioned in prior quarters.
Amazon's forecast for the current quarter is "reassuring" and the retailer could gain market share as the tariff war plays out, said David Silverman, senior director for credit rating firm Fitch Ratings, in a statement.
"Amazon’s results could moderate as the year progresses, given consumer spending choppiness, the impact of tariffs, and potential pullbacks to business spending, although the company’s value positioning should support better performance than many peers," he said. "Longer term, we believe Amazon can continue expanding its core businesses while augmenting growth through newer verticals like digital advertising and artificial intelligence applications."
Contributing: Rachel Barber and Jessica Guynn, Paste BN, and Reuters.
Mike Snider is a reporter on Paste BN’s Trending team. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com
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