Amazon CEO claims tariffs haven’t affected consumer spending habits

In the United States on May 21, 2025, during Amazon's annual shareholder meeting, CEO Andy Jassy addressed concerns regarding the impact of President Donald Trump's tariffs on consumer behavior and spending. Jassy stated that the company has not detected any notable change in consumer buying patterns, indicating that demand for products remains robust. He highlighted that they have not observed any significant increases in average selling prices despite the tariffs that have been implemented. Other major retailers, such as Walmart and Target, have signaled potential price hikes due to the tariffs, contrasting with Amazon's position and approach. Jassy mentioned that Amazon proactively made strategic inventory purchases to mitigate the effects of tariffs and maintain low prices for customers. This tactic demonstrates the company's focus on staying ahead of potential pricing challenges within an evolving retail environment. With a significant portion of their sales coming from third-party sellers, Amazon is managing a diverse marketplace where individual sellers have different pricing strategies in response to market conditions. During the shareholder meeting, it was noted that some third-party sellers have raised their prices, while many others have chosen to keep their prices unchanged. This variation reflects the complexity and adaptability of Amazon's marketplace, which is characterized by a wide range of products and competitive pricing options. The CEO emphasized that this diversity provides customers with the best selection at the best prices. In the broader context, Jassy's statements come amidst a tense economic situation influenced by trade policies and tariffs. As retailers navigate these challenges, consumer reactions and spending behaviors will be critical in shaping the future operational strategies of companies like Amazon. Overall, Jassy's remarks will be closely monitored as they represent a significant perspective on consumer confidence in the face of economic pressures introduced by governmental trade actions.