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New York, NY – A heated exchange between the White House and Amazon
culminated in the online retail giant scrapping plans to display tariff costs on its
product listings, following a direct call from President Donald Trump to Amazon
founder Jeff Bezos.
The controversy erupted after Punchbowl News reported that Amazon was
considering showing customers the portion of an item's price attributed to U.S.
tariffs, placed directly alongside the total cost. This move, intended to illustrate the
impact of Trump's trade policies on consumer prices, triggered a swift and strong
reaction from the administration.
President Trump, upon being informed of the report, personally called Jeff Bezos on
Tuesday morning to express his displeasure. "Jeff Bezos was very nice. He was
terrific," Trump told reporters later that day. "He solved the problem very quickly
and he did the right thing. He's a good guy."
White House Press Secretary Karoline Leavitt condemned Amazon's initial plan as a
"hostile and political act." During a press briefing, she questioned why Amazon
hadn't taken similar action during the Biden administration's tenure, when inflation
reached a 40-year high. "This is another reason why Americans should buy
American," she stated.
Treasury Secretary Scott Bessent echoed Leavitt's sentiment, dismissing the idea
that tariffs significantly impact prices. "A 10% tariff is not going to change virtually
any price," he claimed, referring to the baseline tariff applied to most countries.
However, this statement overlooks the 145% tariff imposed on Chinese imports, a
crucial factor for Amazon, which sources a substantial portion of its goods from
China.
Initially, Amazon downplayed the scope of its plan, stating that the tariff display
was only being considered for its budget-focused "Amazon Haul" section. However,
within hours, the company issued a follow-up statement clarifying that the idea
was "never approved" and "not going to happen" on any of its platforms.
The White House's aggressive stance included Leavitt referencing a 2021 Reuters
report alleging Amazon's cooperation with a "Chinese propaganda arm" to censor
reviews of President Xi Jinping's writings on its Chinese website. This, she argued,
reinforced the need for Americans to prioritize domestic products and for the U.S.
to onshore critical supply chains.
Meanwhile, other e-commerce platforms like Shein and Temu have already
implemented pricing adjustments due to tariffs, with Temu introducing a separate
"import charge" at checkout. Senate Minority Leader Chuck Schumer encouraged
more businesses to follow suit, urging them to "show your customers how much
tariffs are hurting in their pocketbook."
This incident underscores the complex relationship between the Trump
administration and Amazon. Despite past tensions, Bezos has recently sought to
cultivate a more positive rapport with the president, including a $1 million
donation to Trump's inaugural fund and increased engagement with the White
House. However, the impact of Trump's tariffs, particularly the 145% duty on
Chinese goods, continues to strain Amazon's business model, as the company
sources up to 70% of its products from China, according to Wedbush Securities.
Amazon has also begun to reach out to their sellers, by sending emails to gauge
the impact of Trumps tariff agenda.
The swift reversal by Amazon highlights the significant influence the president
wields over major corporations and the delicate balance between business
interests and political pressures in the current economic landscape.
