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Amazon Andy Yasi CEO said the company still digested the impact of the president on Thursday Donald Trump‘s sweep tariffsBut that its huge network of other sellers can “convey this cost” to consumers.
“I understand why, I mean, depending on which country you are, you have no 50% extra profitability you can play,” Yassi said in an interview with Andrew Ros Sorkin from CNBC. “I think they will try to transfer the price.”
On the third side of the Amazon market consists of millions of sellers, many of whom are in China or bleed their products from the region. Third -party sellers now make up about 60% of all products sold on Amazon.
Eating which one released your annual shareholder letter Earlier in the morning, the company made some “strategic stock purchases” and, in charge of negotiations on some orders for purchase, seeking to retain low prices.
This week, Amazon has started canceling some immediate orders received by suppliers in China after Trump’s tariff announcements, CNBC consultants said. Some of the suppliers of household items and kitchen accessories were ready for Amazon’s pickup in shipping ports, only to obtain a notice through an internal system called the central provider that their orders were canceled.
He said Amazon saw some evidence of consumers who accumulated the items in anticipation of raising prices, but it is too early to tell how widespread this behavior is, he said.
“People did not stop buying, and in certain categories we see how people buy forward, but it’s hard to know if it’s just an anomaly in the data because it’s just a few days or how long it will last,” Yasi said.
Trump Last week signed Executive order for the introduction of a far -reaching tariff plan. For several days he canceled the course and abandoned the tariffs associated with the countries to the total 10% rate for all trading partners except China.
Tariffs can potentially attract the costs of construction infrastructure to meet the growth of demand for artificial intelligence, such as data processing centers. The cloud computing business Amazon was a great beneficiary of this demand, and the company has promised to spend up to $ 100 billion This year on AI Technologies.
Jassy said that Web Services Amazon started the process of diversification of its supply chain approximately five years ago, which allowed her to shout components from a number of markets, “not only in one country.” The company does not plan to slow down the construction of new data centers, he added.
“We will continue to build,” Yassi said.