Exclusive: Senate Dem presses Amazon on price hikes amid tariffs
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Sen. Maggie Hassan (D-N.H.) is pressing Amazon CEO Andy Jassy over grocery price hikes tied to President Trump's steel and aluminum tariffs, per a letter exclusively obtained by Axios.
Why it matters: The letter from the ranking member of the Joint Economic Committee could put Amazon in a tight spot — forced to talk about tariffs' impacts on prices just months after the White House threatened the retailer over sharing tariff costs.
- There's been more pressure on canned goods after Trump signed an order in early June that doubled tariffs to 50% on steel and aluminum imports.
Driving the news: Hassan asks Jassy to account for Amazon's price hikes on grocery staples like Campbell's soup and Bush's beans — and provide internal data on SNAP shoppers and supply chain costs.
- The letter comes the day before the retail giant reports its quarterly earnings Thursday.
The latest: An Amazon spokesperson said in a statement to Axios that the company has "received the letter and look forward to replying to the Senator."
The big picture: This is part of Hassan's effort to aid the committee in its "ongoing effort to analyze the impact of steel and aluminum tariffs, specifically, on food prices and jobs within the grocery supply chain."
- Hassan sent letters to Albertsons, Dollar General, Walmart, Costco and Kroger in June about the impact of steel and aluminum tariffs.
- Data from the Consumer Brands Association suggests the 50% steel and aluminum tariffs could increase store prices for items in steel cans by as much as 15%.
Zoom in: Hassan notes a recent Wall Street Journal analysis that found that 1,200 of the cheapest household goods had price increases, and that canned food was squeezed by the steel tariffs.
- Amazon raised prices on certain types of Campbell's soup by 30%, on varieties of Bush's beans by 22% and on certain steel wire baskets used to store pantry items by 115%, the WSJ analysis found.
Yes, but: Amazon told Axios that the WSJ article published July 20 "is based on a fundamentally flawed analysis that cherry picked a tiny fraction of items and fails to represent reality."
- "The fact is that the average prices of products we sell across our entire selection, including everyday essentials, has not changed appreciably outside of typical fluctuations that occur across millions of items," the Amazon spokesperson told Axios.
- Amazon also posted a blog entry refuting the WSJ analysis.
What they're saying: "High grocery prices are a top economic concern for Americans, and experts state that tariffs could significantly increase the cost of canned foods," Hassan said in the letter.
- During Amazon's May investor call, Jassy said average retail prices were steady and noted "most sellers just haven't changed pricing yet."
What's next: Hassan is requesting that Jassy and Amazon provide data and answer several questions no later than Aug. 20.
Editor's note: This story was updated with comment from Amazon.
