Amazon rules out displaying tariff impact after White House attack

Amazon was forced to play down a report that it was considering displaying the impact of tariffs during its online checkout process after the White House said such a move would be ‘a hostile and political act’.

White House press secretary Karoline Leavitt with Treasury Secretary Scott Bessent, shows a picture of Jeff Besos as she responds to a question about Amazon. Picture: AP /Manuel Balce Ceneta

Amazon.com was forced to play down a report that it was considering displaying the impact of tariffs during its online checkout process after President Trump called company founder Jeff Bezos and the White House said such a move would be “a hostile and political act.”

The e-commerce giant said Tuesday it had considered displaying how much import charges would increase prices on its ultracheap shopping website Haul, but said the idea “was never approved and is not going to happen.”

Amazon also said it hadn’t considered the idea for the main Amazon site and no changes have been implemented on any Amazon properties.

Yet the company’s response was too late to avoid White House involvement. Trump called Bezos to raise concerns after Punchbowl News reported that Amazon was planning to display the impact of tariffs during its online checkout process, according to people familiar with the matter.

Criticism from White House press secretary Karoline Leavitt sent company shares down in early morning trading.

“This is a hostile and political act by Amazon,” Leavitt told reporters. “Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years.”

Amazon didn’t immediately respond to a request for comment on the phone call between Trump and Bezos.

The company considered displaying import charges ahead of the Trump administration’s planned change starting May 2 to a popular tariff exemption, known as de minimis, for small shipments from China, according to a person familiar with the matter.

The exemption had allowed small shipments from outside the US to avoid duties and customs inspections. Many items from Amazon’s Haul site have used the exemption.

Bargain sellers Temu and Shein also benefited from the exemption, which helped them keep down prices on clothing and other goods shipped directly from China, and become formidable competitors to Amazon in the US.

Temu had become one of the most downloaded shopping apps in America and had spent billions of dollars on advertising.

Amazon launched Haul late last year as a response to the competition. The Haul website can be accessed through a link from Amazon’s main website. The service has sold clothing, household goods and accessories from warehouses in China for prices often less than $10.

The sites are especially vulnerable to the end of the de minimis exception, but e-commerce sites generally have been bracing for impact from the Trump administration’s tariffs because many offerings are made overseas, including China.

Karoline Leavitt holds a news article on Amazon CEO Jeff Bezos that reads ‘Amazon partnered with China propaganda arm’. Picture: Mandel Ngan / AFP

Most of Amazon’s sales come from independent sellers on its site, with a large percentage of them selling items from China.

Amazon, which reports its first quarter earnings on Thursday, has been trying like rivals Walmart and Target to keep prices low in the face of tariffs on China. The firms have been pressuring their suppliers to absorb cost increases and dropping free perks from corporate offices while pausing some shipments of goods from China.

Amazon cancelled some vendor orders from China after tariffs were announced. It has also asked some vendors it purchases products from directly to send an email confirming their advertisement commitments for this year.

The tech giant has “cost support agreements” in place with some vendors to ensure that it makes consistent margins on the products it buys from them and sells to customers, according to consultants who work with Amazon vendors.

Some vendors that have tried to charge Amazon more after tariffs were imposed have been asked to pay the online shopping giant to make up for the increase.

“A lot of vendor negotiations are happening right now, so Amazon has a position of leverage,” said Corey Thomas, an Amazon consultant. “Closing negotiations will be even harder.”

Wall Street Journal