Prices for China-made goods on Amazon (AMZN) have risen 2.6% from January to mid-June, outpacing the 1% annualized gain in core goods CPI through May, signaling that Trump’s tariffs are starting to filter through to U.S. consumers.
DataWeave’s exclusive Reuters analysis of over 25,000 items homed in on 1,407 products listing China as the origin, revealing a sharp uptick in price increases beginning in May, with median gains accelerating across multiple categories.
Market Overview:- China-origin Amazon prices up 2.6% Jan–mid-June vs. 1% core goods CPI;
- Home & Amp; Furniture and Electronics led gains at 3.5% and 3.1%;
- 475 items saw price hikes, 633 unchanged, 299 declined.
- Thin margins amplify tariff pass-through, driving quick price adjustments;
- Retailers delay broader hikes amid weak consumer sentiment;
- Amazon reports no atypical average price change but third-party sellers adjust;
- New steel and auto tariffs from June 23 may further elevate prices;
- July CPI and retail sales will gauge the ongoing impact;
- Consumer spending patterns may shift if price pressures persist.
- The accelerated price increases for China-made goods on Amazon signal that tariffs are being quickly absorbed into the supply chain, allowing retailers and sellers to maintain margins and adapt to new cost structures.
- While some products saw sharp price hikes, a significant portion of tracked items (633 out of 1,407) remained unchanged in price, suggesting not all tariffs are being fully passed through to consumers, which may help preserve demand in certain categories.
- Amazon’s assertion that average prices remain within typical fluctuations indicates that, for now, the overall impact on the broader marketplace is contained and manageable, supporting continued consumer engagement.
- Selective price increases by major retailers like Walmart, Macy’s, and Nike demonstrate a disciplined approach, focusing on categories where demand is less sensitive and value perception remains strong.
- If consumer sentiment improves or if retailers find alternative sourcing or cost-saving measures, the inflationary pressure could stabilize, allowing for continued growth in online retail and discretionary spending.
- The ability of third-party sellers—who account for 62% of tracked items—to adjust pricing and sourcing strategies quickly may help mitigate the long-term impact of tariffs on the e-commerce ecosystem.
- Prices for China-made goods on Amazon surged 2.6% between January and mid-June, outpacing the 1% annualized gain in core goods CPI, clearly demonstrating that Trump’s tariffs are being passed through to U.S. consumers and eroding purchasing power.
- Home & Furniture (up 3.5%) and Electronics (up 3.1%) saw the steepest increases, with notable examples like a Hamilton Beach kettle jumping from $49.99 to $73.21—making essentials and discretionary items less affordable for households.
- Retailers are wary of passing on the full cost of tariffs amid weak consumer sentiment, but continued price pressure could further dampen spending and hurt sales volumes, especially in price-sensitive categories.
- Additional steel tariffs introduced in late June are likely to spur further price jumps, compounding the inflationary impact and straining household budgets even more.
- Major U.S. retailers including Walmart, Macy’s, and Nike have already warned of selective price hikes, and if consumer sentiment does not improve, firms may be forced to delay or reduce further price increases at the expense of margins.
- Inflation data through July will clarify whether the tariff-driven price increases are temporary or persistent, but for now, the risk of prolonged inflation and weaker consumer spending remains elevated.
The timing and magnitude of further price adjustments will hinge on consumer resilience, incoming inflation data and any expansion of U.S. tariffs.
