Jeff Bezos and Amazon found themselves at odds with the White House on Tuesday after contemplating a move to highlight the effect of tariffs on product prices on their platform. Initially reported by Punchbowl News, the situation elicited a swift and angry response from President Donald Trump, who personally called Bezos to voice his displeasure, as confirmed by two senior officials to CNN.
The proposal aimed to reveal to consumers how tariffs — reaching up to 145% on Chinese goods — were influencing the final prices of products, amidst the escalating trade tensions driven by the Trump administration. In a subsequent press briefing, White House Press Secretary Karoline Leavitt deemed the proposal a "hostile and political act."
However, Amazon clarified that the proposal was never approved or implemented. A spokesperson explained that the idea was merely considered for Amazon Haul, their low-cost product site, and was ultimately dismissed. "This was never approved and will not be happening," the company stated to CNN.
Amid the controversy, there has been increasing pressure on e-commerce platforms. Companies like Temu and Shein have already adjusted their prices due to the new tariffs, showcasing the impact of trade tensions on global retail.
Meanwhile, Amazon's stock (AMZN) experienced a nearly 1% drop in early Tuesday trading. Since the start of the year, Bezos's personal fortune has declined by roughly $30 billion, according to Bloomberg's Billionaires Index, affected by market volatility and U.S. trade policies.
Though Trump has recently praised Bezos publicly, this controversy underscores the complex dynamics between these two influential figures amid the current political and economic landscape in the United States.
Impact of Tariffs on E-commerce Platforms
How do tariffs affect Amazon's pricing strategy?
Tariffs increase the cost of goods imported from countries like China, which can lead to higher prices for consumers. Amazon considered showing these price changes on its platform to reflect the tariff impact.
Why did Amazon consider highlighting tariff impacts on its platform?
Amazon thought about highlighting tariff impacts to inform consumers about the reasons behind potential price increases and to provide transparency regarding product costs under the new trade conditions.