US President Donald Trump personally reached out to Amazon founder Jeff Bezos on Tuesday after reports indicated that Amazon might disclose the impact of trade tariffs to customers. The report highlighted Amazon’s potential plan to showcase tariff costs on its low-cost American platform, Amazon Haul. Launched in 2024, Amazon Haul competes with other affordable fashion platforms like Shein and Temu. The report sparked outrage at the White House, prompting direct action from Trump.
Amazon Scraps Plans for Tariff Transparency
Following the backlash, Amazon confirmed it would not move forward with revealing tariff-related costs to customers. The company stated that it had merely considered the idea but decided against implementing it. The decision comes amid mounting tensions over tariffs, with many analysts predicting that the administration’s approach could raise consumer prices and increase the likelihood of a recession.
White House Press Secretary Karoline Leavitt, speaking at a press conference marking Trump’s first 100 days in office, strongly criticized Amazon’s potential move. She echoed Trump’s concerns, suggesting that the company’s actions were politically motivated. Leavitt also pointed out that this was a stark contrast to Amazon’s lack of similar moves during prior inflation periods under the previous administration.
Trump’s Tariff Strategy and Its Impact on US Industry
Since returning to office in January 2025, Trump has aggressively raised tariffs as part of his broader economic strategy aimed at bolstering domestic manufacturing. His administration has increased tariffs across various goods, including a sharp 145% duty on imports from China. While some initial tariff plans have been revised, many imports now face duties of at least 10%.
Trump’s protectionist approach has led to reduced trade between the US and China, sparking concerns over potential supply shortages, particularly in everyday consumer goods like baby strollers, umbrellas, and other items sourced from China. The strategy has sparked debate among economists, who warn that higher tariffs could strain US households by raising the prices of everyday products.
Rising Costs and Reactions from E-commerce Giants
In response to the rising tariffs, several e-commerce giants are beginning to highlight the cost increases caused by the higher import taxes. Platforms such as Shein and Temu, which rely heavily on Chinese imports, have already raised prices in response to the tariffs. Researchers have noted that Chinese merchants make up around half of all sellers on Amazon’s US marketplace, signaling the widespread impact on consumer goods across the platform.
Anonymous Report Triggers White House Fury
The issue was first brought to light by Punchbowl News, which cited an anonymous source who revealed Amazon’s consideration of displaying tariff impacts for shoppers on Amazon Haul products. Tim Doyle, a spokesman for Amazon, confirmed that the idea had been discussed internally but clarified that it had not been approved or implemented. The report came shortly after the expiration of a temporary exemption for Chinese goods, which had previously shielded certain shipments from tariffs.
Despite the controversy, sources close to Amazon emphasized that the company’s decision to abandon the idea was not directly linked to the White House’s intervention. Trump’s office, however, made it clear that the administration viewed Amazon’s initial consideration as a politically charged move that could add unnecessary tension to an already delicate economic environment.
Trump Praises Bezos for Quick Resolution
Following his call with Bezos, Trump praised the Amazon founder for handling the issue swiftly. In a statement, Trump said, “Jeff Bezos was very nice. He handled everything perfectly. He acted quickly. He is a good guy.” This positive remark contrasts with the history of friction between Trump and Bezos, especially during the former president’s first term.
A Complex Relationship Between Trump and Bezos
The relationship between Trump and Bezos has always been complicated. Amazon supported Trump’s inauguration financially in 2017, and Bezos met with the president afterward, expressing support for his tax cuts and deregulation initiatives. However, tensions surfaced during Trump’s first term, with the president frequently criticizing Amazon, particularly its relationship with the Washington Post, which Bezos owns.
In 2019, Amazon sued the Pentagon, claiming it lost a $10 billion cloud computing contract due to political interference from Trump. The lawsuit accused Trump of using his office to punish Bezos over personal grievances, as the president saw the Washington Post as a critical opponent.
The Broader Impact of Tariff Policies
As the US continues to grapple with its trade policies under Trump’s leadership, the growing rift between e-commerce giants and the government points to the deepening tension between global businesses and national economic strategies. With Amazon’s brief contemplation of tariff transparency now off the table, the focus shifts back to how these tariff-driven price hikes will impact US consumers and businesses alike.
