Trump praises Bezos after Amazon tariffs display plan scrapped amid White House backlash
In a twist, Amazon’s tariffs brought tech, politics, and trade tensions to the forefront; President Donald Trump publicly praised Jeff Bezos after Amazon scrapped an idea to display import fees tied to tariffs alongside product prices. The move came after strong opposition from the White House, a personal call between Trump and Bezos, and questions about the actual impact of Amazon tariffs on American consumers.
The controversy started when Punchbowl News reported that Amazon was considering a new feature that would make tariff-related charges visible on its site. The report suggested that this transparency would show customers how much tariffs, especially those of the Trump era, were adding to prices. But the idea struck a nerve with Trump’s team, who viewed it as a subtle but sharp political jab.
White House Press Secretary Karoline Leavitt condemned the proposed change, calling it a hostile and political act. She added that Amazon’s alleged plan seemed suspiciously timed and wondered why such measures weren’t taken under President Biden. “Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?” she asked, linking the issue back to long-standing partisan concerns.
Commerce Secretary Howard Lutnick joined in, telling CNBC that such a move would be misleading. “A 10% tariff is not going to change virtually any price,” he claimed, brushing off concerns about how Amazon tariffs would affect consumer pricing. “It’s nonsense.”
Amazon, however, moved quickly to cool the firestorm. Tim Doyle, a company spokesperson, clarified in a statement that the idea had only been briefly discussed within a specific team, those behind the low-cost Amazon Haul storefront and was never meant for the main site. “This was never approved and is not going to happen,” Doyle confirmed.
Trump, who often feuded with Bezos during his presidency, struck a surprisingly different tone this time. After calling Bezos directly to voice his displeasure, Trump later told reporters the Amazon founder “did the right thing.” “Jeff Bezos is very nice. He was terrific,” he said. “He solved the problem very quickly. Good guy.”
The phone call, which took place Tuesday morning, reportedly came just after Trump was alerted to the Punchbowl report by senior officials. While sources say Trump was “pissed” at the idea of a multibillion-dollar company blaming Amazon tariffs for price hikes, his mood shifted once Bezos responded quickly and scrapped the idea.
Amazon shares initially dipped but recovered to close just 0.2% down on the day, suggesting investor relief that the tension had been resolved without any major fallout.
Despite the walk-back, Senate Minority Leader Chuck Schumer defended the original concept. He urged big retailers to be more open about tariff-related costs, saying, “To the large businesses that sell to consumers, I say show your customers how much tariffs are hurting in their pocketbook. People deserve to know the impact tariffs have on their finances,” His comments reflect a broader push for price transparency in the global trade world, specifically regarding Amazon tariffs.
Meanwhile, other e-commerce companies, such as Temu and Shein, have already implemented some form of tariff-related price labeling. Temu, for instance, has introduced a new import charge shown at checkout, making it clear to consumers that additional costs stem from international trade policies.
In a recent CNBC interview, Amazon CEO Andy Jassy discussed the topic, noting that Amazon continues to collaborate with the government on issues such as tariffs and pricing policy. “We’re going to try and do everything we can to keep prices as low as possible for customers,” he said. “We have conversations about tariffs, and we share our concerns.”
As Amazon prepares to report its earnings later this week, many expect further clarification on how Amazon tariffs will affect its strategy. With growing scrutiny over the de minimis exemption, which allows imports under $800 to enter the U.S. duty-free, the issue isn’t going away.
Bezos, once a regular target of Trump’s ire, seems to be navigating the new political climate more strategically. Amazon’s past $1 million donation to Trump’s inauguration, along with a recent collaboration on a documentary about Melania Trump, suggests a new chapter in their relationship.
With tensions around global trade heating up again, the debate over Amazon tariffs is far from over, and what is shown (or hidden) on the price tag may shape how Americans perceive the impact of international policy on their everyday purchases.
Image: Unsplash
