Amazon denies tariff pricing plan after White House calls it "hostile and political"
Add Axios as your preferred source to
see more of our stories on Google.
Prime truck is seen in Los Angeles on November 13, 2023. Photo: Jakub Porzycki/NurPhoto via Getty Images
Amazon now denies reports it planned to list how much tariffs increased products' prices after White House Press Secretary Karoline Leavitt slammed the move as a "hostile and political act."
Why it matters: The reported plan further suggests a growing rift between businesses and President Trump, who has made aggressive tariffs and a global trade war central to his economic agenda.
- Trump's massive 145% tariffs on Chinese imports will hit Amazon hard because 60% of its sales come from smaller, independent retailers often heavily reliant on imports.
The latest: Amazon spokesperson Tim Doyle told Axios in an updated statement after its initial denial that "the team that runs our ultra low cost Amazon Haul store considered the idea of listing import charges on certain products."
- But he added, "This was never approved and is not going to happen."
- Amazon had been considering showing the tariff costs on its Haul platform as a way to reflect changes in the "de minimis" exemption, which previously left import duties off goods under $800, per a source familiar with the situation.
- Trump lifted that exemption as part of his tariff plan, which could dramatically increase the cost of goods from Chinese retailers like Shein and Temu.
Driving the news: Punchbowl reported Tuesday that Amazon would soon show how much of an item's cost is due to tariffs next to the total listed price.
- CEOs of three of the nation's biggest retailers (Walmart, Target and Home Depot) also recently warned Trump that his policies could hurt supply chains, empty shelves and increase prices, Axios' Marc Caputo and Ben Berkowitz reported.
- That pressure coincided with the White House softening its tone on trade talks with China.
What they're saying: "Why didn't Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?" Leavitt questioned.
- She declined to discuss the president's relationship with Amazon founder Jeff Bezos but reiterated, "This is certainly a hostile and political action by Amazon."
Zoom out: Amazon's signature "Prime Day" event could see a pullback from sellers who previously offered China-made goods, Reuters reported.
- Sellers who spoke with Reuters said they planned to save inventory this year to sell later at a full price as the cost of importing goods soars.
- An Amazon spokesperson told Axios it is having a "strong response" from sellers to this year's Prime Day.
Yes, but: It's not just the one discounted event that's sent sellers scrambling as they work to move production to more mildly tariffed markets and temporarily hike prices in the meantime, CNBC reports.
- Sellers face the difficult decision of passing costs along to customers or shrinking their profits.
- According to e-commerce software company SmartScout, 900 products on Amazon saw increased prices since April 9, with an average increase of 29%.
- An Amazon spokesperson told CNBC that covers just a "tiny fraction" of items sold and, per its review of the research, fewer than 1% "of the items studied saw an increase in price."
Catch up quick: Amazon CEO Andy Jassy acknowledged that dilemma when speaking with CNBC earlier this month, saying third-party sellers may "pass that cost on" to consumers.
- He said the company would "try and do everything we can to keep prices as low as possible for customers," such as through forward inventory buys and term renegotiations.
- But Jassy predicted that sellers will ultimately pass the cost on.
Go deeper: What to know about Amazon Haul, the Temu and Shein competitor
Editor's note: The headline and lede of this story have been updated with a response from Amazon.
Axios' Ben Berkowitz contributed reporting.
