Donald Trump Calls Jeff Bezos After Amazon Reveals Tariffs On Goods

The White House is at odds with Amazon over the online retailer's plans to display the impact of tariffs on product prices. White House Press Secretary Karoline Leavitt criticised the move as a "hostile and political act," suggesting that Amazon's decision to show the breakdown of tariff costs is a deliberate attempt to undermine the Trump administration's economic policies.

"Why didn't Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?" Leavitt questioned.

Per a report by Reuters, US President Donald Trump called Amazon's Jeff Bezos to complain about a report that said the company has planned to reveal the cost of tariffs on a particular item on their website.

Trump's tariffs on Chinese imports, set at 145%, will significantly impact Amazon, as a substantial portion of its sales come from smaller, independent retailers that rely heavily on imports. In response to the tariffs, some Amazon sellers are planning to adjust their strategies, potentially pulling back from the company's "Prime Day" event or passing on increased costs to customers.

According to Punchbowl, Amazon may show the tariff costs next to product prices, although the company has denied these plans. An Amazon spokesperson stated that the idea was considered by Amazon Haul, the company's low-cost shopping hub, but was ultimately rejected. Despite this, the White House remains critical of Amazon's perceived stance on tariffs. 

“The team that runs our ultra-low-cost Amazon Haul store considered the idea of listing import charges on certain products. This was never approved and is not going to happen,” said Tim Doyle, Amazon spokesperson.

The impact of Trump's trade policies on online shopping is evident. Discount retailers Temu and Shein, which ship from China, have started displaying 145% "import charges" in customers' totals to reflect the surcharge on Chinese goods. Meanwhile, Amazon sellers are struggling to navigate the increased costs, with some opting to absorb the costs themselves or temporarily raise prices.

Amazon CEO Andy Jassy has acknowledged the challenges posed by the tariffs, stating that third-party sellers may pass on the costs to consumers. Jassy emphasised that Amazon will attempt to keep prices low for customers through various means, such as forward inventory buys and term renegotiations.

The White House's criticism of Amazon's plans has sparked questions about the relationship between President Trump and Amazon founder Jeff Bezos. Leavitt declined to comment on the president's relationship with Bezos. 

On being asked if this shows a rift between Trump and Amazon's billionaire founder who donated $1 million for the US president's inauguration, Leavitt said: “I will not speak to the president's relationships with Jeff Bezos.”