On Tuesday, Amazon swiftly responded to reports suggesting that it planned to display the effects of U.S. tariffs on goods sold on its platform. These reports stemmed from an article by Punchbowl News, which indicated that the company was considering listing the impact of tariffs on its main website. However, Amazon clarified that such a plan was only discussed for its low-cost division, Haul, which caters to budget-conscious shoppers buying products from China.

The company denied the notion that it would display tariff-related price increases on its primary site, emphasizing that the idea was never approved. Despite this clarification, the initial report caused a brief 2% drop in Amazon’s stock price before the shares regained some of their losses later in the day.

White House Criticizes Amazon’s Potential Tariff Pricing Strategy

The misunderstanding quickly led to criticism from the White House. Press Secretary Karoline Leavitt accused Amazon of taking “a hostile and political action” by even considering the idea of listing tariff costs. This remark added fuel to the fire, given the ongoing trade tensions between the U.S. and its global partners, particularly China.

Since President Donald Trump’s administration has imposed significant tariffs, the prospect of higher prices on imported goods has become a source of concern for many businesses and consumers. While Amazon denied that it would follow through on displaying these tariff costs, the situation nonetheless drew attention from political figures and media alike.

Trump Contacts Bezos, Resolving the Issue Quickly

In response to the unfolding situation, President Trump reportedly reached out to Jeff Bezos, Amazon’s founder, to discuss the matter. Trump, known for his critical stance on Amazon and its leadership, expressed his concerns about the news report. However, Bezos reportedly acted quickly to address the issue, prompting Trump to acknowledge, “Jeff Bezos is very nice. He solved the problem very quickly. He did the right thing,” following the resolution.

Haul Division Faces Increased Risk Due to Tariffs

Amazon’s Haul division, which launched in November, targets customers seeking lower-priced products, many of which come from China. This makes the division especially vulnerable to the impact of tariffs, as increased import duties could raise prices significantly. Haul’s model, which prioritizes affordability over faster shipping, places it in direct competition with other low-cost platforms like Temu and Shein.

The potential for tariffs to drive up prices is a challenge for Amazon, as it seeks to maintain low-cost offerings while navigating the trade conflict. Critics have warned that the broader impact of tariffs could affect many sectors, with consumer goods being particularly vulnerable to price hikes.

Ongoing Tensions Over Trade Policies and Retail Strategies

Even though the immediate issue regarding tariff pricing has been addressed, Amazon continues to face challenges as tariffs on Chinese goods rise substantially. The company’s Haul site, which thrives on offering affordable products, remains at risk of rising costs due to the trade war. With tariffs continuing to affect various industries, including automakers, Amazon will need to find ways to navigate these challenges while keeping prices competitive.