Amazon Sellers Hike Prices On Essentials As Trump China Tariffs Squeeze Margins

Amazon.com Inc AMZN merchants have raised prices on necessities and bestselling items, including clothing, jewelry, household items, office supplies, electronics, and toys.

The price hikes came after President Donald Trump‘s tariffs prompted the sellers to explore the odds of shifting the burden of higher import costs.

The tariffs posed a headwind for sellers operating with minimal margins.

Also Read: Walmart Doubles Down On Discounts To Keep Prices Low As Tariffs Threaten Shoppers’ Budgets

They have already grappled with increasing Amazon costs tied to storage, fulfillment, shipping, advertising fees, and competitive pricing pressure.

E-commerce software company SmartScout tracked 930 products on Amazon that have noted price hikes since April 9, with an average jump of 29%, CNBC reported Friday.

SmartScout CEO Scott Needham noted that 25% of the price increases were initiated by sellers based in China.

Amazon’s third-party marketplace accounts for about 60% of the company’s online sales. Additionally, many of its merchants are based in China or rely on the country to source and assemble their products.

CEO Andy Jassy told CNBC that Amazon aimed to keep its prices affordable by renegotiating with suppliers. However, he had also signaled that the tariffs could prompt sellers to hike prices to maintain their margins.

Goods imported from China now face import duties of 145%.

Trump’s tariffs reportedly prompted Amazon and Walmart Inc WMT third-party sellers to shift stock to Canada in anticipation of relief.

Amazon stock has tanked 15% year-to-date. In April, Multiple Wall Street firms slashed their price targets on the stock, including a rating downgrade in anticipation of tariff impacts.

Price Action: Amazon stock is down 0.10% at $186.43 is at last check Friday.

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