The Seattle-based tech giant spent a turbulent morning yesterday denying a report by Punchbowl News that it planned to openly display the costs of tariffs on Amazon.com. In a statement, Amazon clarified that this was only being considered for Haul, a competitor to Temu and Shein that specializes in very low-priced Chinese products.
"The team behind our low-cost Amazon Haul store considered the idea of displaying import duties on certain items. This proposal was never approved and will not be implemented," said a spokesperson for the group, adding that "teams often discuss various ideas."
"The company backtracked because it angered the White House, which strongly criticized Jeff Bezos. Killing the messenger is a characteristic of autocrats," Pierre-Yves Gauthier of AlphaValue told his clients this morning.
Bezos, who is "very nice," is being forced to bow to pressure
Amazon shares fell 2% at the opening of Wall Street yesterday after White House spokeswoman Karoline Leavitt described the alleged project as "a political attack." But the stock quickly recovered in the afternoon.
According to an executive official, President Donald Trump himself called Amazon's founder and executive chairman Jeff Bezos to express his dissatisfaction. "Jeff Bezos is very nice," Trump told reporters. "He solved the problem very quickly. He did the right thing."
Since returning to the White House, Donald Trump has launched a new wave of tariffs targeting many trading partners, including China, where duties have jumped 145% since his term began. Many companies fear a massive increase in the price of consumer goods.
Haul, which was launched last November, is particularly exposed to these measures, as its products are shipped directly from China. In exchange for low prices, customers accept longer delivery times.
On May 2, a presidential decree will end the so-called de minimis rule, which until now allowed small packages from China or Hong Kong to enter the United States without customs duties.
Senate Majority Leader Chuck Schumer has called on major retailers to clearly display the real cost of the new taxes. "I am calling on big companies to show their customers how much these tariffs are hurting their purchasing power," he said.
On a different note, Republican Representative Marjorie Taylor Greene also reacted. "Ahhh, come on Amazon!!" she posted on X. "I was so excited about tariff tracking to avoid buying Chinese products!!"
Prime Day in the spotlight
In addition, according to Reuters, several third-party sellers who offered Chinese-made products during Prime Day last July are reportedly giving up on participating this year, or reducing their promotions. Amazon confirmed on Tuesday that the promotional event would return, but did not reveal the dates, contrary to its usual practice.
Despite sometimes tense relations with Donald Trump during his first term, particularly due to criticism from the Washington Post (owned by Bezos), Amazon seems to be trying to ease tensions. The group has notably purchased a documentary about Melania Trump for $40m, contributed to the president's inauguration fund, and broadcast The Apprentice on Prime Video.
This strategy seems to be paying off. In March, in an interview with The Atlantic published last Friday, Trump said of Bezos: "He's 100%. He's been great."
But on Tuesday, Karoline Leavitt reignited the controversy by referring to a 2021 article stating that Amazon had collaborated with a "Chinese propaganda outlet." "This is yet another reason why Americans should buy local," she insisted, highlighting the administration's efforts to strengthen critical supply chains and support domestic production.
Amazon responded at the time that it "complies with all applicable laws and regulations wherever it operates, and China is no exception." The White House shared the link to the article on social media but did not immediately respond to the company's denial.
Amazon is still an e-commerce giant. Clearly in line with the party.
