Amazon (AMZN, Financial) is walking into a storm—and passing the umbrella straight to its customers. In a CNBC interview, CEO Andy Jassy said tariffs from President Trump's latest executive order are going to hit consumer wallets. Third-party sellers, already operating with razor-thin margins, are expected to push those extra costs downstream. It's already showing up in buyer behavior. Some categories are seeing early stockpiling as shoppers race to beat the price hikes.

Behind the scenes, Amazon's been scrambling. It's pulling back on direct imports from China, especially on home goods and kitchen items, and doing strategic forward buys to lock in lower prices before tariffs hit harder. Jassy also revealed the company has been renegotiating vendor terms to hold the line on pricing where it can. Meanwhile, Amazon Web Services—its high-margin cloud business—appears better shielded, thanks to a years-long effort to diversify suppliers beyond just one country.

But here's the twist: just as tariffs threaten to inflate costs, Amazon is doubling down on a $100 billion investment into AI infrastructure—exactly the kind of buildout that could get more expensive if trade friction escalates. For investors, this means margin pressure in the near term, but if Amazon can balance its supply chain and ride the AI wave, the long-term upside is still very much alive.