Amazon says it can emerge stronger from tariff impact
Amazon hasn’t seen a drop in consumer demand tied to tariffs—yet. CEO Andy Jassy said the company is observing “heightened buying” in some categories, likely due to consumers shopping ahead of potential price hikes. While average selling prices haven’t meaningfully increased, Jassy attributed that to forward buying by Amazon and its sellers, as well as delayed pricing changes. He cautioned that this could shift depending on where tariffs land.
“Amazon is not uniquely susceptible to tariffs,” Jassy said. “As it relates to China, retailers who aren’t buying directly from China are typically buying from companies who themselves are buying from China, marking these items up, rebranding, and selling to U.S. consumers. These retailers are buying the product at a higher price than Chinese sellers selling directly to U.S. consumers in our marketplace, so the total tariff will be higher for these retailers than for China direct sellers.”
The word “tariff” was mentioned 18 times in the call.
Amazon’s Q2 outlook is “inherently unpredictable and may be materially affected” by fluctuations in foreign exchange rates, tariff and trade policies, inflation, interest rates, and broader global economic conditions, according to vp of investor relations Dave Fildes.
Still, Jassy said he’s optimistic the retail giant could come out of the current tariff environment stronger, as it did with past disruptions like the Covid-19 pandemic.
Microsoft sees software as buffer
Tariffs came up only once in Microsoft’s prepared remarks during the earnings call. CFO Amy Hood noted that Windows OEM and devices revenue grew 3% year over year, exceeding expectations. She attributed part of the bump to elevated inventory levels, as tariff uncertainty led to stockpiling throughout the quarter.
