Update April 29, 2025 5:14 pm CEST: Following White House criticism, Amazon has denied a report alleging plans to display tariff costs, stating it was only mulled for its Haul discount shop.
The White House administration delivered sharp criticism towards Amazon on Tuesday, following reports the e-commerce company plans to display the cost contribution of President Donald Trump’s tariffs on product listings.
During a press briefing coinciding with the administration’s 100th day in office and attended by Treasury Secretary Scott Bessent, White House Press Secretary Karoline Leavitt labeled the potential move a “hostile and political act by Amazon.”
This strong reaction came after Punchbowl News first reported Amazon’s alleged plan, which is expected in the coming weeks and seems to have precipitated a drop of over 2% in Amazon’s premarket share price.
Leavitt, stating she had just gotten off the phone with the President about the Amazon news, directly questioned the company’s motives and timing. “Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?” Leavitt asked.
Adding further context to the administration’s view, she referenced unrelated historical reports, including a December 2021 Reuters story regarding Amazon and China, suggesting the current reported plan was unsurprising. Concluding her remarks on the matter, Leavitt asserted, “This is another reason why Americans should buy American.” Amazon has not yet officially responded to the Punchbowl report or the White House’s critique.
Amazon Plan Surfaces Amid Tariff Adjustments
The core of the controversy, as first detailed by Punchbowl News, involves Amazon’s intention to soon specify the tariff component next to the total price for goods sold on its site.
This move towards itemized pricing comes as businesses adapt to the new tariff structure implemented by the Trump administration under the International Emergency Economic Powers Act (IEEPA), announced April 2nd. This policy established a 10% baseline global tariff effective April 5th, initially coupled with higher, country-specific reciprocal tariffs effective April 9th.
While a 90-day pause on most reciprocal tariffs (excluding China) began April 10th, the 10% baseline affecting most imports remains in place, providing the direct context for potential price impacts Amazon might display. Punchbowl suggested Amazon’s reported strategy could be interpreted as an attempt to deflect consumer frustration over price increases onto administration policy, though such a move carries the risk of drawing further White House ire.
Retailers Navigate Tariff Landscape
Amazon’s reported consideration is not the first instance of retailers adjusting to the new trade environment. As CNBC reported, China-based fast-fashion platforms Shein and Temu have already added significant surcharges, with Temu’s checkout now showing an “import charge” that adds approximately 145% to item costs.
These actions reflect broader industry adaptation to trade policy shifts and associated uncertainties, which Wedbush analyst Dan Ives previously characterized as creating “massive uncertainty and chaos for companies trying to plan their supply chain, inventory, and demand.” The effects have been felt widely, with Apple CEO Tim Cook reportedly discussing tariff impacts with Commerce Secretary Howard Lutnick in early April, and logistical disruptions evidenced by DHL suspending some US-bound shipments from April 21st due to customs rule changes.
Broader Pressures on Tech Giants
The friction over displaying federal tariff costs occurs as Amazon contends with financial pressures from multiple government levels. In Washington state, where Amazon is headquartered, lawmakers just approved a budget with over $9 billion in new state taxes aimed partly at large tech firms.
This prompted the state’s business community to warn that costs would be passed to consumers, with Association of Washington Business President Kris Johnson stating, “These costs simply can’t be absorbed by businesses — they will be passed on to consumers in the form of higher prices for everyday goods and services.”
The state-level situation adds context to the national tariff debate, alongside anxiety expressed by Washington’s Governor Bob Ferguson regarding federal actions. In an official statement released April 27th, Ferguson linked the need for state reserves to potential federal policies under Trump, declaring “Maintaining our Rainy Day Fund reserves will help us weather this storm. I am not going to allow the state that I love to be at the financial mercy of Donald Trump and Elon Musk.”
Furthermore, reports surfaced earlier in April (via the Financial Times) suggesting that federal tariff impacts were already causing Amazon to pressure suppliers for low double-digit price decreases, with Goldman Sachs analysts estimating a potential $5-$10 billion hit to Amazon’s operating profits this year from tariffs.
