Amazon is set to inform customers about the additional costs they may incur when shopping on its platform, sparking hostility from the White House.
White House Calls Amazon ‘Hostile’ Over Tariff Costs Plan
The White House has accused Amazon of committing a ‘hostile and political act’ after the e-commerce giant reportedly plans to inform customers how much Donald Trump‘s tariffs would cost them as they shop.
How Amazon Plans to Inform Customers About Tariffs
According to a report by Punchbowl News, Amazon will begin displaying on its site how much the tariffs have increased the prices of individual products, breaking out the figure from the total listed price. This move is expected to give customers a clearer understanding of the additional costs they may incur when shopping on the platform.
A tariff is a tax imposed by a government on imported or exported goods.
The purpose of tariffs is to protect domestic industries, generate revenue, and regulate trade balances.
There are different types of tariffs, including ad valorem (percentage-based) and specific (fixed amount per unit).
Tariffs can have both positive and negative effects on the economy, depending on various factors such as the industry being protected, the level of protection, and the overall trade balance.
In recent years, tariffs have been a contentious issue in international trade, with countries imposing retaliatory measures to protect their own interests.
White House Reacts to Amazon‘s Plan
The press secretary, Karoline Leavitt, was responding to the report and asked why Amazon did not do this when the Biden administration hiked inflation to its highest level in 40 years. She also questioned whether Amazon‘s decision is a political move aimed at influencing consumer behavior.
Trump‘s Disapproval of Amazon‘s Plan
“I don’t know what they’re thinking, it’s just not going to happen,” Trump himself called Jeff Bezos, Amazon‘s billionaire founder, shortly after the report was published to complain about the change. This suggests that the White House views Amazon‘s plan as a hostile and political act.
Background on Amazon‘s Relationship with Trump
The relationship between Amazon and Trump has been strained in the past. During the 2016 campaign, Bezos publicly argued that some of Trump‘s rhetoric damaged democracy, while Trump accused the tech giant of failing to pay enough taxes. However, since Trump‘s return to power, Bezos has taken a noticeably different approach, attending Trump‘s inauguration and donating $1m to his inauguration fund.
Jeff Bezos co-founded Amazon in 1994 as an online bookstore.
He initially named the company Cadabra, Inc., but later changed it to Amazon.com, Inc. in 1995.
Under his leadership, Amazon expanded into various product categories and became one of the world's largest e-commerce companies.
Bezos' net worth surpassed $200 billion in 2021, making him the richest person in the world according to Forbes.
He stepped down as Amazon's CEO in July 2021 but remains involved with the company.
Amazon‘s Response
Amazon moved to distance itself from the report, saying that the idea had been considered by Amazon Haul, the company’s recently launched low-cost shopping hub, but was never approved. The company’s spokesperson, Tim Doyle, stated that listing import charges on certain products is not going to happen.
