Amazon CEO, Andy Jassy, Discusses Tariffs and Their Impact on Business
During a recent interview on CNBC’s “Squawk Box,” Amazon CEO, Andy Jassy, discussed the company’s stance on tariffs and how they plan to address the added costs. Jassy began by acknowledging the current economic climate, stating, “We’re in a unique economic environment right now with a lot of uncertainty.”
Amazon’s Approach to Tariffs
When asked about Amazon’s position on tariffs, Jassy expressed that the company is “working through the implications” of the potential added costs. He went on to explain that Amazon, like many other businesses, is evaluating their supply chains and considering alternative sourcing options to mitigate the impact of tariffs on their products and customers.
Who Will Bear the Cost of Tariffs?
Jassy also touched upon the topic of who will ultimately bear the cost of tariffs. He stated, “Our goal is always to pass on the least amount possible to our customers.” However, he acknowledged that there may be instances where the added costs will have to be absorbed by Amazon or passed on to customers. Jassy emphasized that the company is committed to maintaining its competitive pricing and providing value to its customers.
Impact on Consumers
According to various online sources, the potential tariffs could lead to higher prices for consumers on a range of products, including electronics, clothing, and household items. The American Consumer Institute estimates that a 25% tariff on all Chinese imports could result in an average increase of $1,000 per household per year.
Impact on the World
On a global scale, the implementation of tariffs could lead to a trade war between the United States and China, potentially disrupting international trade and economic growth. The World Trade Organization has warned that a prolonged trade war could result in a significant decrease in global economic output.
Conclusion
In conclusion, Amazon CEO, Andy Jassy, acknowledged the uncertainty surrounding tariffs and their potential impact on the company and its customers during a recent interview on CNBC’s “Squawk Box.” While Amazon is evaluating alternative sourcing options and working to minimize the added costs, there is a risk that consumers may ultimately bear the brunt of the tariffs. On a larger scale, the potential trade war between the United States and China could disrupt international trade and have far-reaching economic consequences.
- Amazon is evaluating alternative sourcing options to mitigate the impact of tariffs
- Consumers may bear the brunt of added costs from tariffs
- Trade war between the US and China could disrupt international trade and economic growth
