Amazon’s stock fell 1.5% on Tuesday morning after the White House criticized a plan by the company. The plan aimed to show customers how President Trump’s tariffs affect product prices. Press Secretary Karoline Leavitt called this idea a “hostile and political act” during a press briefing, increasing tensions between the government and Amazon.
The controversy started with a report from Punchbowl News. It said Amazon might add a feature that shows how much of an item’s price comes from tariffs. If this feature is implemented, it could make consumers more aware of how trade policies impact costs.
The White House responded quickly and strongly. Leavitt stated, “This is a hostile and political act by Amazon,” and mentioned that she discussed it with the President. She questioned why Amazon did not introduce this transparency earlier, especially during times of high inflation. Leavitt also pointed to reports claiming Amazon worked with a “Chinese propaganda arm,” bringing additional tension to the situation.
This conflict happens as President Trump aggressively uses tariffs, especially on goods imported from China, which can be as high as 145%. These tariffs affect retailers like Amazon, which gets about 60% of its sales from third-party sellers, many of whom rely on imports from China.
Amazon’s reported plan highlights the growing tension between the government’s trade policies and major companies. Leaders from other retailers like Walmart, Target, and Home Depot have also expressed concerns about tariffs impacting supply chains and raising prices for consumers.
The stock market reacted quickly to the government’s criticism, with Amazon shares (NASDAQ: AMZN) dropping over 1.5% during Tuesday’s trading, following a 2% decline in pre-market activity. Amazon has not yet confirmed the plan to show tariff costs or directly responded to the government’s comments.