Amazon swiftly denied reports on Tuesday that it had planned to display the impact of U.S. tariffs on its main website, Amazon.com. The confusion stemmed from an article by Punchbowl News, which suggested that the company intended to show the added costs of tariffs on products sold on its platform. In response, Amazon clarified that it had only considered implementing such a plan for its low-cost Haul division, which targets budget-conscious consumers, particularly those buying products sourced from China.
However, the e-commerce giant rejected the idea, stating that it was never approved and would not move forward with it. A spokesperson emphasized that discussions around new ideas are common, but in this case, no such decision was made. Despite this clarification, the initial report caused a brief drop of 2% in Amazon’s stock value, before shares recovered slightly in the afternoon.
White House Criticizes Amazon’s Potential Pricing Plan
The confusion surrounding Amazon’s plans sparked backlash from the White House, with Press Secretary Karoline Leavitt labeling the pricing idea as “a hostile and political act by Amazon.” Leavitt’s comments amplified the tensions, especially as President Donald Trump’s administration has imposed significant tariffs on a variety of products, particularly those imported from China.
The tariffs have become a point of contention in ongoing trade relations, with critics arguing that the levies could drive up the cost of everyday consumer goods. Although Amazon quickly denied any intent to display tariffs on its main platform, the episode led to public scrutiny.
Trump Complains to Bezos Over Tariff Display Reports
President Donald Trump, known for his outspoken views on Amazon and its founder Jeff Bezos, reportedly contacted Bezos to discuss the issue. According to a White House official, Trump expressed his concerns about the Punchbowl News report, but Bezos responded promptly to resolve the matter. Trump reportedly stated, “Jeff Bezos is very nice. He solved the problem very quickly. He did the right thing,” in reference to the swift action taken by Amazon’s executive team to address the matter.
Haul’s Vulnerability to Tariffs and Competition with Low-Cost Rivals
Amazon’s Haul division, which launched in November, specializes in offering low-cost goods, often from China. This makes it particularly susceptible to the impact of tariffs, as the price of goods could increase significantly due to the added duties. Similar to competitors like Temu and Shein, Haul focuses on providing budget-friendly products to customers, though with the trade-off of longer shipping times.
Amazon’s decision to avoid listing tariff costs aligns with its broader strategy of minimizing price hikes for consumers, but the rising cost of imported goods due to tariffs remains a significant challenge for the retailer. Automakers and other industries have also voiced concerns about the potential for price increases on consumer goods, should tariffs continue to escalate.
Ongoing Scrutiny of Amazon’s Pricing Strategy Amid Trade Tensions
Despite the resolution of the immediate concern, Amazon continues to face intense scrutiny over its pricing strategy, especially as tariffs on Chinese goods have increased by as much as 145% since Trump took office. The company’s Haul site, which caters to consumers seeking lower-cost products, remains a key point of vulnerability for Amazon as it navigates the broader trade and tariff challenges.
