Amazon in White House crosshairs over toll tags
WASHINGTON — Amazon said on Tuesday its low-cost Haul unit had considered listing import charges for goods in light of new US tariffs but denied looking at such a plan for its main website, after the White House accused it of a hostile political act.
The Seattle retailer spent a chaotic morning denying a report from Punchbowl News that it planned to display prices showing tariffs’ impact on Amazon.com.
It acknowledged it had considered it for certain inexpensive China-made products on Haul but then rejected the idea.
The confusion initially prompted a 2-percent drop in Amazon shares after White House press secretary Karoline Leavitt called the reported pricing plan “a hostile and political act by Amazon.” Amazon denied the initial story.
The company said its smaller Haul division, which competes for low-cost buyers with Temu and Shein, had mulled displaying import levies.
“The team that runs our ultra low cost Amazon Haul store considered the idea of listing import charges on certain products. This was never approved and (is) not going to happen,” a company spokesperson said, adding that “teams discuss ideas all the time.”
Amazon shares recovered losses and were up slightly in afternoon trading.
President Donald Trump has imposed a tsunami of tariffs on US trading partners, including China which has seen tariff costs rise by 145 percent since Trump took office, sending many corporations scrambling.
Trump called Amazon founder and executive chairman Jeff Bezos to complain about the Punchbowl News report, a White House official said.
“Jeff Bezos is very nice,” Trump told reporters. “He solved the problem very quickly. He did the right thing.”
Automakers and others have said new tariffs could drastically hike the cost of consumer goods.
Low-cost subsidiary
Amazon’s Haul site, which debuted in November, is particularly susceptible to tariffs because it is dependent on goods shipped directly from China, similar to popular low-cost site Temu.
In exchange for lower prices, customers face longer shipping times.
Trump this month signed an executive order that closes a trade loophole known as “de minimis” that has allowed low-value packages from China and Hong Kong to enter the United States free of duties. The order takes effect on May 2.
Senate Democratic Leader Chuck Schumer urged national retailers to show the true cost of Trump’s tariffs.
“To the large businesses that sell to consumers, I say: show your customers how much tariffs are hurting in their pocketbooks,” Schumer said.
