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Punchbowl News recently reported that Amazon was contemplating the inclusion of tariff pricing for select products. Shortly after, NBC News reported that President Donald Trump had contacted Amazon founder Jeff Bezos regarding this issue.
Subsequently, a spokesperson clarified to CNBC that Amazon was merely evaluating this approach for a limited number of items in their Amazon Haul category.
In response to inquiries, Amazon issued a statement indicating, “The team managing our ultra-low-cost Amazon Haul store considered the idea of displaying import charges on specific products. However, this proposal was never finalized and will not move forward.”
Amazon’s Tariff Pricing: A Broader Context
Amazon’s initiative is not unprecedented in the retail sector. Companies such as Shein and Temu have already incorporated import charges into their pricing, leading to price increases of up to 145% for their products, as reported by CNBC.
Reaction from the White House
The White House expressed discontent with Amazon’s consideration of tariff pricing. “I just spoke with the president about this, regarding Amazon’s announcement. This is a political maneuver by the company,” remarked White House Press Secretary Karoline Leavitt.
She further questioned, “Why didn’t Amazon implement this when the Biden administration’s inflation rates reached a 40-year high?” Leavitt indicated skepticism towards Amazon’s motives, suggesting a connection to potential political interests.
Potential Price Impact from Tariffs
Even in the absence of specific tariff pricing, it’s anticipated that imported goods could see price increases on Amazon. SmartScout, an e-commerce analysis firm, tracked pricing on 930 products sold by Amazon, revealing an average price hike of 29% since early April across various categories, including clothing, household goods, and electronics.
However, Amazon disputes these findings, asserting that the study was exaggerated and only reflected a small subset of their vast product inventory.
Tips for Shopping Amid Price Increases
Consumers can save money by shopping early, comparing prices with other retailers, or leveraging the benefits of Amazon Prime memberships.
For those not currently subscribed, a trial period of 30 days is available, allowing potential customers to explore these benefits without commitment. Additionally, using credit card cash back programs can help mitigate the rising costs resulting from tariffs.
The Prime Visa card allows users to earn 5% back on all Amazon purchases, provided they hold an active Prime membership.
Conclusion
Amazon’s exploration of tariff pricing for its Haul items has been abandoned following intervention from high-profile figures. Nevertheless, consumers should brace for potential price increases linked to tariffs. Utilizing benefits from loyalty programs such as Amazon Prime can ultimately support savings on essential products.
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www.kiplinger.com