Amazon CEO Andy Jassy on how Trump's tariffs may not have impact on company's retail game: 'I think when you've got…'

Amazon CEO Andy Jassy has presented an optimistic outlook regarding the potential impact of US President Donald Trump's tariffs on Chinese goods, suggesting that the company's extensive retail operations may remain largely unaffected. He elaborated that the very structure of Amazon 's e-commerce platform, with its capacity to offer opportunities to a wide array of sellers, may provide an advantage to sellers based in China amidst these new import duties.

In comments during a call with analysts following the release of Amazon's strong first-quarter earnings results, Jassy explained that the tariffs on goods from China would negatively impact the US-based sellers.

“Retailers who aren’t buying directly from China are typically buying from companies who themselves are buying from China, marking these items up, rebranding and selling to US consumers,” Jassy told analysts on a call.

However, he suggested that the complex global supply chain could inadvertently give Chinese sellers an advantage on the e-commerce platform.

“These retailers are buying the product at a higher price than Chinese sellers selling directly to US consumers in our marketplace. So, the total tariff will be higher for these retailers than for China direct sellers,” he added.

Jassy highlights advantages of Amazon’s diverse marketplace
Furthermore, Jassy highlighted the inherent advantage of Amazon's vast and diverse marketplace, which hosts approximately two million independent sellers. He posited that if some US sellers struggle due to increased tariff costs and are forced to reduce their presence, other sellers, potentially those based in different countries, would likely step in to fill the resulting gap in supply.

“I think when you’ve got larger diversity like we have, we have a better chance of some of those sellers deciding that they’re going to capture [market] share, and they’re not going to pass on all or any of those tariffs to customers,” Jassy noted.

While acknowledging that many sellers might pass on the increased tariff costs to consumers through higher prices, Jassy also pointed out that some sellers, including those operating from different nations, might view the situation as an opportunity to gain market share by absorbing some or all of the tariff costs to attract new customers. He believes that Amazon's large and diverse seller base increases the likelihood of such competitive pricing strategies emerging.

Moreover, recent reports have suggested that Amazon is pressurising sellers to bear the increased costs due to tariffs to minimise its impact on its profits. The company said that it is doing what’s best for its customers.