Amazon recently tried to calm down worried investors about how new taxes on imported goods might hurt its online shopping business. The company doesn’t have many choices left to help small sellers who use its platform, especially now that the U.S. government has placed heavy taxes on products coming from China. These taxes, introduced by former President Donald Trump, have made it much harder for big companies like Amazon, Walmart, and Apple to keep their prices low.

Right now, Amazon says it hasn’t noticed customers buying less or prices going up too much. However, some shoppers are buying more in certain categories, possibly because they want to avoid paying higher prices later. During a meeting with investors, Amazon’s CEO, Andy Jassy, explained that the company is helping sellers bring their products into the U.S. earlier than usual to dodge extra taxes. Many sellers have already stored extra stock in American warehouses to keep prices from rising.

But experts say this is only a temporary fix. Once sellers run out of their extra stock, they may have no choice but to raise prices in the coming months. One analyst, Gil Luria, believes most sellers probably only stored enough inventory to last about six months. If the tax situation doesn’t improve, Amazon and its sellers will face tough decisions—either accept lower profits, let prices go up, or push sellers to take the financial hit.

Apple is also feeling the pressure. The company said these new taxes could cost them an extra $900 million in the next few months. Apple’s CEO, Tim Cook, mentioned that the company is making big changes to its supply chain to deal with the problem. Meanwhile, Amazon’s cloud computing business, AWS, which usually helps balance out any losses in its online store, didn’t perform as well as expected last quarter. This was disappointing, especially since Microsoft’s cloud service, Azure, did much better.

For now, Amazon and other companies are doing what they can to avoid passing extra costs onto customers. But if these taxes stay in place, shoppers might soon see higher prices on everything from electronics to everyday goods. The coming months will be crucial as businesses figure out how to handle the financial strain without losing customers.

As the holiday shopping season approaches, the pressure on Amazon and its sellers will only grow. Many families will be looking for deals on gifts, but if tariffs force prices up, shoppers may turn to cheaper alternatives or delay purchases altogether. This could hurt small businesses that rely on Amazon’s platform, as they may not have the financial cushion to absorb higher costs like bigger companies can. If prices rise too much, even loyal Amazon customers might start comparing prices elsewhere, making it harder for sellers to stay competitive.

Beyond just Amazon and Apple, the wider tech industry is bracing for long-term changes. Companies like Samsung, Intel, and Qualcomm—which depend on Chinese manufacturing—are also scrambling to adjust their supply chains. Some are exploring factories in Vietnam, India, or Mexico to avoid tariffs, but shifting production takes time and money. In the meantime, consumers could see slower product releases, fewer discounts, or even shortages of popular gadgets. While stocking up on inventory helps in the short term, the real challenge will be finding a lasting solution that keeps prices stable without hurting businesses or shoppers.