Amazon CEO Andy Jassy says price increases are starting to drive up product prices

Amazon CEO Andy Jassy says shoppers are starting to see higher prices as retailers look to cash in on President Donald Trump’s tariffs.

Jassy he told CNBC that Amazon and many of its third-party sellers kept items ahead of schedule to keep prices low, but most of the offerings ended up falling last fall.

“Then you start to see some prices go into other prices, other things, and you see some sellers thinking that they are giving the high price to the buyers with high prices, some are thinking that they will take it to drive their needs and others are doing something in between,” said Jassy. “I think he’s starting to see more of that.”

Amazon’s review shows a change from last year, when Jassy had said that the prices did not rise after Trump announced the tariffs.

Jassy said Tuesday that while Amazon is trying to keep prices low, price hikes may be unavoidable at times.

“In the long run, because retail is, as you know, the number one medium business, if people’s money goes up by 10%, there’s not much room to take it,” said Jassy. “You don’t have unlimited options.”

Despite the high prices, consumers are “brave,” Jassy said, noting that some consumers are switching to cheaper products and shopping on impulse, while others are abandoning smart shopping.