Amazon’s CEO says the company can weather challenges from tariffs because of how big it is
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Summary
Amazon has said it isn’t expecting its margins to be severely impacted by the proposed additional international trade tariffs because of its diverse supply chains.
Andy Jassy, CEO of Amazon, said during the company’s Q1 earnings call that while it’s “difficult to know how things will shake out,” its internal modelling suggests the impact on the company will be “modest.”
He added that there had been “heightened buying” in certain categories, which may indicate stocking up ahead of any potential impact, but noted that the average price of items had not risen yet.
Jassy also confirmed that the company had not seen any drop-off in demand.
The comments came as Amazon reported a 43% YoY rise in revenue to 116.4bnandearningspershareof27.75, beating analysts’ forecasts.