The Trump administration has criticized Amazon for reportedly planning to display tariff costs on its platform, calling it a ‘hostile and political act.’ The White House press secretary, Karoline Leavitt, made the statement during a press briefing in response to a Punchbowl News report that Amazon would begin showing customers how much tariffs were adding to product prices.
Leavitt questioned why Amazon hadn’t implemented this practice when inflation was high during the Biden administration, saying, ‘Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?’ The issue has sparked controversy, with Trump himself calling Amazon’s billionaire founder, Jeff Bezos, to express his discontent.
Amazon’s online marketplace has seen price increases since Trump announced sweeping tariffs, particularly on Chinese goods. The company has been pressuring its third-party sellers to absorb these extra costs rather than passing them on to customers. In response to the criticism, Amazon distanced itself from the report, stating that the idea had been considered by Amazon Haul, its low-cost shopping hub, but was never approved.
The controversy highlights the impact of Trump’s trade policies on online shopping. Just before the White House criticism, discount retailers Temu and Shein began displaying ‘import charges’ to customers. The White House statement has raised questions about the relationship between Trump and Bezos, who stepped down as Amazon CEO in 2021 but has had a complex history with the former president.
Bezos attended Trump’s inauguration and Amazon donated $1m to Trump’s inauguration fund, marking a different approach from their strained relationship during Trump’s initial presidential campaign. The Washington Post, owned by Bezos, has been critical of Trump’s first term, which previously strained their relationship. Recently, Amazon paid $40m to license a documentary about Melania Trump, further highlighting the complex dynamics between the parties involved.
Related Controversy
The tension between Amazon and the Trump administration is not new. During Trump’s initial presidential campaign, Bezos publicly criticized some of Trump’s rhetoric, while Trump accused Amazon of not paying enough taxes. The Washington Post’s scrutiny of Trump’s first term further angered him, leading to threats against the US Postal Service to pressure Amazon.
Amazon’s Response
Tim Doyle, Amazon spokesperson, clarified that the team running Amazon Haul considered but rejected the idea of listing import charges on certain products. ‘The team that runs our ultra-low-cost Amazon Haul store considered the idea of listing import charges on certain products. This was never approved and is not going to happen,’ he said.
The situation underscores the ongoing challenges faced by e-commerce companies navigating Trump’s trade policies and the administration’s response to their business practices.
