New York, Jan 20, 2026, 16:32 (EST) — After-hours
- Amazon dipped in late trading, weighed down after CEO Andy Jassy signaled price pressures from tariffs.
- Fresh U.S. tariff threats rattled markets, sparking a risk-off mood that slammed retailers and big tech.
- Traders are now focused on policy details and Amazon’s early-February earnings for signs of demand.
Amazon.com Inc (AMZN.O) shares slid $8.02, or 3.4%, to $231 in after-hours trading Tuesday. CEO Andy Jassy told CNBC at the World Economic Forum in Davos that “We’re starting to see some of the tariffs creep into some prices.” He added shoppers are “a little bit more hesitant” on pricier discretionary items, after earlier stockpiles ran out last fall. 1
The remarks came at a sensitive time for markets. Investors are closely watching how fast tariff hikes translate into prices at the checkout and whether consumers hold steady on spending as costs rise once more.
For Amazon, this cuts through the usual political chatter. Its store offers a real-time glimpse into everyday demand, with many prices controlled by third-party sellers who can adjust them at a moment’s notice.
The broader market showed weakness: the S&P 500 ETF SPY dropped 2.1%, while the Nasdaq 100 ETF QQQ also lost 2.1%. “Take equity risk off table, buy gold, buy cash,” advised Alex Morris, CEO and CIO of F/m Investments, summing up the day’s action as tariff news sent volatility higher. 2
Other retailers followed the trend. Walmart slipped 0.8%, Target dropped 1.7%, and Costco showed little movement.
The mood turned sour after President Donald Trump issued new tariff threats targeting several European nations. According to Reuters, Trump plans to impose a 10% tariff starting Feb. 1, escalating to 25% by June 1, linked to a dispute involving Greenland. 3
Tariffs are import taxes levied at the border. For online retailers, these often translate into increased landed costs on imported products, forcing sellers to decide between narrower margins or raising prices.
Amazon’s marketplace complicates that trade-off, since independent sellers control prices and promotions. If a critical mass of merchants raises prices simultaneously, Amazon could end up seeming more like an inflation amplifier than a dampener.
The read-through isn’t straightforward. Sellers might absorb some costs just to keep sales flowing, and Amazon has its own levers—shipping speed, selection, ad tools—that can cushion demand shocks to some extent.
The downside scenario is clear-cut: more extensive or prolonged tariffs trigger steeper price increases, discretionary spending slows, and the stock slides further as investors slash growth forecasts. Another risk is pure uncertainty — erratic policy moves could keep risk premiums elevated well before any tariffs take effect.
Amazon’s upcoming quarterly report, due Feb. 5, will draw investor attention for clues on pricing strategies, shifts in consumer demand, and how sellers might be adjusting their tactics. 4
