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Topline
The White House targeted Amazon on Tuesday after reports indicated that the e-commerce giant was considering displaying to consumers the price hikes linked to tariffs imposed during President Donald Trump’s administration. However, Amazon refuted claims that it was planning such a comprehensive initiative to highlight these tariff-related price adjustments.
President Donald Trump, Microsoft CEO Satya Nadella, and Amazon chairman Jeff Bezos (L-R) in 2017.
Key Facts
According to an unnamed insider cited by Punchbowl News, Amazon, which depends on China for over 50% of its third-party sellers, was contemplating indicating the portion of a product’s price that results from tariffs.
During a briefing with journalists, White House Press Secretary Karoline Leavitt criticized this potential move as a “hostile and political act by Amazon,” noting that she had discussed the issue with Trump directly.
Amazon spokesperson Tim Doyle stated to the Washington Post that there was “never a consideration for the main Amazon site” to present tariff-related fees to consumers. However, he mentioned to Forbes that the company had explored the idea of disclosing import charges on specific products through its discount platform, Haul.
Doyle clarified that the proposal to list tariff prices on Haul was “never approved and not going to happen.”
Following Leavitt’s criticism of Amazon, the company’s stock fell by 1% on Tuesday morning, contrasting with a slight gain for the S&P 500.
Crucial Quote
Leavitt challenged, “Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?” This comparison is complex as tariffs correspond to increased import costs, while inflation during President Joe Biden’s term is influenced by a variety of factors affecting different goods inconsistently.
Tangent
Leavitt refrained from commenting on the “president’s relationship with Jeff Bezos,” mentioning that the Amazon chairman had dined with Trump at Mar-a-Lago in December. Bezos, who attended Trump’s inauguration, has been a significant figure in the retail industry and is estimated to have a net worth of around $200 billion, making him the second-richest person globally, just behind Elon Musk.
What To Watch For
Amazon is set to announce its earnings for the first quarter of 2025 on Thursday afternoon. The company achieved $638 billion in revenue last year, making it the second-highest retailer in the world by sales, following Walmart.
Source
www.forbes.com