Amazon has clarified that it does not intend to display additional tariff costs alongside product prices on its platform, despite earlier reports suggesting otherwise. The e-commerce giant’s statement came after the White House criticized the purported plan, with White House press secretary Karoline Leavitt accusing Amazon of a “hostile and political act” and suggesting it had “partnered with a Chinese propaganda arm.”
The controversy began when Punchbowl News reported that Amazon planned to show the tariff-derived portion of product costs “right next to” the total listed price, citing an anonymous source. However, Amazon spokesperson Tim Doyle stated that only its Haul service had “considered the idea” of listing import charges on certain products, but this was “never approved and is not going to happen.”
Background and Reaction
The Trump administration’s reaction appeared to stem from a misinterpretation of Amazon’s internal discussions. U.S. President Donald Trump reportedly called Amazon founder Jeff Bezos to express concerns about the reported plans. Following Amazon’s clarifying statement, Trump praised Bezos, saying he “solved a problem very quickly” and “did the right thing.”
Impact of Tariffs
The tariff controversy highlights the challenges faced by e-commerce companies like Amazon amid the ongoing trade tensions. Trump’s tariffs have raised concerns about potential price increases for consumers and businesses. Economists warn that these import taxes could lead to higher prices for daily goods and increased inflationary pressure.
Other e-commerce players have already begun to adjust to the new tariff landscape. Temu, owned by PDD Holdings, now lists added “import charges,” while Shein, based in Singapore, includes a checkout banner stating that tariffs are included in the price. Both companies recently announced price hikes citing “recent changes in global trade rules and tariffs.”
Expert Analysis
According to Rob Lalka, a professor of business at Tulane University’s Freeman School, the White House’s strong reaction signals concern about companies redirecting customer frustration. Lalka notes that companies have long itemized added costs and that Amazon itself began collecting state sales taxes when required.
“Companies are always communicating something with us whenever they are putting things in their receipt,” Lalka explained, suggesting that while Amazon wasn’t actually breaking out tariff prices, the idea wasn’t without precedent. “The reality is that politics are always being played.”
