Amazon CEO Andy Jassy revealed at the annual shareholder meeting that the company has not seen significant changes in average prices or consumer spending habits due to President Donald Trump’s tariff policies.
This statement contradicts the economic doomsday predictions spread by Trump’s opponents in recent months.
According to TechSpot, Jassy stated during the Q&A session at the Amazon annual shareholder meeting that contrary to warnings from retailers like Walmart and Target about price increases, Amazon has not experienced significant increases in average prices nor observed a decline in consumer demand.
Jassy reported to shareholders, “Currently, we have not seen any weakening in demand, nor have we seen any meaningful increase in average prices.”
He also mentioned that while some sellers on the platform, especially Chinese companies, have directly responded to tariff increases by raising prices, other sellers have chosen to maintain current prices. These changes have offset each other, keeping overall average prices stable and consumer spending unchanged.
Amazon’s stance aligns with Breitbart’s economic editor John Carney’s view that “tariffflation” has not occurred.
The inflation report in April was expected to show that American consumers were feeling the burden of President Trump’s new tariffs, including a 10% universal tariff on imported goods and higher tariffs on dozens of countries implemented on April 2nd. However, after a full month, cost pressures have not materialized.
Wall Street analysts predicted a 0.3% increase in the Consumer Price Index (CPI), but it only rose by 0.2%. Prior to this, prices fell in March, and the increase in February was only 0.2%. The inflation rate, calculated on an annualized basis over three months, stands at 1.2%.
The final demand Producer Price Index (PPI) was expected to rise by 0.2%. However, the US Labor Department stated on Tuesday, May 20th, that the PPI dropped by 0.5% in April, marking the largest monthly decrease since the early stages of the pandemic. The core PPI (excluding food, energy, and trade services) decreased by 0.1%, the first monthly drop in five years. Final demand for goods prices remained steady, energy prices slightly decreased, and food prices dropped.
Jassy’s remarks come at a time of escalating tensions in US-China trade relations.
He told shareholders that Amazon has successfully navigated the complex landscape of international trade disputes so far without causing significant disruption to its business model or customer base. The company’s vast network of sellers and suppliers, combined with its dominant position in the e-commerce market, may allow it to show a certain level of flexibility and resilience in the face of economic changes.
On April 29th, Amazon denied reports that it would display President Trump’s tariff costs on product pages. The White House had previously criticized tariff labels as “politically motivated hostile acts.”
An Amazon spokesperson explained in a statement that the team responsible for their low-cost Amazon Haul store had considered listing import costs for certain products, but this idea was never approved and will not be implemented.
Sources revealed to Bloomberg that Amazon had initially considered displaying import costs in relation to the US government ending the “de minimis” exemption for goods from mainland China and Hong Kong, which is not directly related to the White House’s overall tariff policy.
In recent interviews with multiple media outlets, President Trump revealed that his relationship with Amazon’s founder and chairman, Bezos, has improved. “He’s a good guy… I didn’t really understand him during the first term, and now it’s really different from back then.”
(This article references reporting from BREITBART)