White House press secretary Karoline Leavitt stated that she had discussed a Punchbowl News report regarding potential tariff cost disclosures with Trump, conveying his sentiment as: "This is a hostile and political act by Amazon."
However, Amazon clarified on Tuesday that it never contemplated listing tariffs on its primary retail platform and that no such feature was implemented on any of its sites. "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 asserted.
Amazon's stock initially saw a 2.2% dip in premarket trading but subsequently recovered to trade near its previous level.
The tariffs enacted during the Trump administration significantly impacted U.S. trading partners, with China experiencing a 145% increase in tariff costs since that period. Automakers and other industries have cautioned that new tariffs could lead to substantial increases in the prices of consumer goods.
Amazon's Amazon Haul store, launched in November and potentially affected by tariff adjustments, allows consumers to purchase low-cost items like $5 handbags and $10 sweaters from China-based sellers, albeit with longer delivery times.
Earlier this month, Trump signed an executive order that closes a trade loophole known as “de minimis.” This loophole had allowed low-value packages from China and Hong Kong to enter the U.S. without incurring duties, but the new order is set to take effect on May 2nd.
Reuters reported on Monday that some third-party merchants who previously sold China-made goods during Amazon’s key July Prime Day shopping event are either not participating this year or are reducing the amount of discounted merchandise they are offering.
Leavitt on Tuesday referenced a 2021 Reuters report alleging that the tech giant had partnered with a “Chinese propaganda arm.” "So, this is another reason why Americans should buy American," Leavitt said, emphasizing the efforts of that administration to strengthen critical supply chains and promote domestic manufacturing.
In 2021, Amazon stated that it "complies with all applicable laws and regulations, wherever we operate, and China is no exception."
The White House had earlier shared a link to the Reuters report on Twitter but did not immediately issue a comment following Amazon's denial of the tariff disclosure plans.