Amazon played down a report that it is planning to display how much of an item’s price is due to tariffs, saying it was “never a consideration” for the main website, after the White House accused the e-commerce giant of a “hostile and political act”.
The move was reported by Punchbowl, which cited an unnamed person familiar with the plan. But Amazon said such a proposal was only under consideration for one part of its business.
Why it Matters
President Donald Trump’s second term has seen sweeping new tariffs, reshaping global trade dynamics. A universal 10-percent baseline duty now applies to all U.S. imports, with China facing Trump-imposed levies as high as 145 percent.
Increased costs of importing goods, and parts for manufacturing in the U.S., have raised concerns that consumers will ultimately end up paying more for goods and services.
What to Know
Responding to the Punchbowl report, White House press secretary Karoline Leavitt said: “Why didn’t Amazon do this when the [Joe] Biden administration hiked inflation to the highest level in 40 years?”
She pointed to Amazon’s relationship with China, holding up a printout of a Reuters article headlined, “Amazon partnered with China propaganda arm,” and said the price move is “not a surprise.”
“This is another reason why Americans should buy American,” Leavitt said. “It’s another reason why we are onshoring critical supply chains here at home to shore up our own critical supply chain and boost our own manufacturing here.”
Leavitt said she had discussed the situation with the president and said his message about the reported move was that it was “a hostile and political act by Amazon.”
“The team that runs our ultra-low-cost Amazon Haul store has considered listing import charges on certain products,” an Amazon spokesperson said, according to CNBC.
“This was never a consideration for the main Amazon site and nothing has been implemented on any Amazon properties.”
Newsweek has contacted Amazon’s press office via email for comment.
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MANDEL NGAN/AFP via Getty Images
Amazon was founded by Jeff Bezos, who has courted Trump’s favor in recent months, dining with him at Mar-a-Lago in December.
Asked if this latest news affected their relationship, Leavitt deferred to the president.
The clash speaks to the debate about who pays the price of import tariffs. Most economists say it is importers, who then pass the costs down to consumers.
But Trump has previously said it is the export side, such as China, that pays.
The president’s 2024 election victory was secured in part due to voter frustration with high prices, and greater confidence in him as a steward of the U.S. economy.
But polling shows increasing economic pessimism among voters due to the impact of tariffs, sentiment that may rebound on Trump and the Republicans at the ballot box if inflation and unemployment rise, and growth slows.
About half of Americans are “extremely” or “very” concerned about the possibility of the U.S. economy going into a recession in the next few months, according to the latest AP-NORC poll.
Roughly half of U.S. adults say that Trump’s trade policies will increase prices “a lot” and another three in 10 think prices could go up “somewhat.”
About six in 10 U.S. adults are “extremely” or “very” concerned about the cost of groceries in the next few months, while about half are highly concerned about the cost of big purchases, such as a car, cellphone or appliance.
Researchers surveyed 1,260 U.S. adults between April 17-21, and the poll has a margin of error of plus or minus 3.9 percentage points.
What People Are Saying
Federal Reserve Chair Jerome Powell warned of the impact tariffs may have in a speech to the Economic Club of Chicago on April 16, prompting a rebuke from Trump, who called for his “termination” and demanded lower interest rates.
“The level of the tariff increases announced so far is significantly larger than anticipated,” Powell has said. “The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”
In a letter to CT Insider, former Senate economist David C. Datelle wrote: “Virtually every economist in the U.S. agrees that these across-the-board tariffs are a sales tax on all working families in America. Economists also have stated that Trump’s tariffs are the worst economic policy by any U.S. president in over 100 years.”
What Happens Next
Trump’s tariffs were placed on a 90-day pause starting on April 9, but he has indicated they could go back into effect sooner. More than 90 countries have expressed interest in negotiating deals to avoid duties, the president said.
