White House hits back at Amazon ‘plan’ to show tariff price rises

The White House has hit back against a reported plan by Amazon to detail the price impact of Donald Trump’s trade tariffs to its customers, calling it a “hostile” political act.

Amazon told the Washington Post it had looked into itemising the costs for customers using Amazon Haul, a low-cost site it launched in the US last year to compete with Shein and Temu.

But it denied such a move had been under consideration for its primary e-commerce platform.

Still, the White House decision to go on the attack over the report is an indication of the pressure it is facing over its new import taxes, which analysts say will lead to higher prices for consumers and increase the chances of a recession.

At a press conference marking the president’s 100 days in office, Press Secretary Karoline Leavitt said she had discussed Amazon’s reported move with the president and claimed it represented “another reason why Americans should buy American”.

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

Trump has ramped up tariffs since re-entering office in January, measures he argues will boost manufacturing and raise tax revenue for the US.

Even after rolling back some of his initial plans this month, Trump’s announcements have left many foreign imports facing new duties of at least 10%, while products from China are facing import taxes of at least 145%.

The measures have prompted a sharp drop in trade between the two countries, and has raised fears of supply shocks and product shortages from baby prams to umbrellas, items for which China is a major supplier.

On Tuesday, Treasury Secretary Scott Bessent defended the government’s economic record and promised trade talks with many of America’s biggest partners were under way.

However, he dodged questions about whether the US was in negotiations with China, the third largest source of imports to the US after the European Union and Mexico last year.

Some businesses are starting to detail the costs of the measures for customers, with Shein and Temu among the online platforms to already announce price hikes.

Merchants from China represent about half of the sellers on Amazon in the US, according to analysts.

Amazon’s plan to detail the tariff impact for customers was first reported by Punchbowl News on Tuesday, citing an anonymous source. The company has not responded to the BBC’s request for comment.

Amazon founder Jeff Bezos, who privately owns the Washington Post, met with Trump after the election and has praised his push for deregulation and lower taxes.

Amazon was among the many businesses to donate money to the president’s inauguration and Mr Bezos was given a seat of honour at the event.

But the two men have had a tense relationship in the past.

Trump repeatedly criticised Amazon and the Washington Post during his first term, while Mr Bezos in 2016 accused Trump of using rhetoric that “erodes our democracy around the edges” and once joked about blasting him to space in a rocket.

In 2019, Amazon filed a lawsuit against the Pentagon, alleging that it had been denied a $10bn contract due to Trump’s decision to “pursue his own personal and political ends” to harm Mr Bezos, “his perceived political enemy”.

Reporting contributed by Bernd Debussman