The Trump administration has criticized Amazon after reports that the company plans to show how President Trump’s tariffs affect product prices on its website. White House Press Secretary Karoline Leavitt called this a “hostile and political act” during a press briefing.
The issue started with a report from Punchbowl News, which said Amazon plans to display the amount of an item’s price that comes from tariffs, alongside the total price. Some view this as a way for Amazon to avoid blame for price increases due to the administration’s trade policies.
Press Secretary Leavitt questioned Amazon’s intentions and timing. She asked, “Why didn’t Amazon do this when the Biden Administration increased inflation to the highest level in 40 years?” Leavitt suggested that the move encourages consumers to “buy American” and mentioned reports of Amazon working with a “Chinese propaganda entity.”
This dispute ties back to President Trump’s tariff strategy, especially the high tariffs on Chinese imports, which can reach 145%. These policies heavily impact retailers like Amazon, where around 60% of sales come from third-party sellers who often depend on imported goods from China.
Amazon’s plan highlights the growing tension between the administration’s trade agenda and the business community’s concerns. Other large retailers, such as Walmart, Target, and Home Depot, have also expressed worries about the negative effects of tariffs on prices and supply chains.
The impact of tariffs is already being felt. Some Amazon sellers are considering scaling back on events like Prime Day to save inventory as import costs rise. Budget retailers like Shein and Temu also plan to raise prices because of the tariffs.
After the White House’s response, Amazon’s stock (NASDAQ: AMZN) dropped by over 2% in premarket trading and fell more than 1% in early trading. Amazon has not confirmed the plan or responded to the White House’s comments yet.