Amazon has just come out on the wrong end of a public reprimand from the White House over its reported plans to show tariff costs in its online storefront. Now the e-commerce giant is attempting to push its third-party sellers to bear more of the new import costs. This transition has alarmed public sector leaders on the federal level. Whether or not it does risks creating consumer confusion about pricing transparency if these costs are listed separately from product prices.
According to a report by Punchbowl News, Amazon was set to begin showcasing how much tariffs have inflated the prices of individual products. Through this initiative, we will unpack these tariff numbers from the grand total sticker price. More importantly, it will better inform customers on their own cost structures. Tim Doyle, an Amazon spokesperson, explained the plan was never officially adopted!
“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,” – Tim Doyle
Even with this clarification issued though, the White House has continued to rip Amazon’s business practices. Press secretary Karoline Leavitt wrote in opposition to the proposed display of tariff costs. She noted that it casts doubt on Amazon’s transparency bona fides to date. She argued that the bill is unnecessary because other retail competitors, like Temu and Shein, have already built large import charges into their prices.
Leavitt remarked on the broader implications of Amazon’s pricing strategies, stating, “Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years? This is another reason why Americans should buy American.” To be clear, the administration is right to point out that they’re increasingly pushing domestic purchasing. Companies like it because they think it will help them avoid increased costs associated with growing foreign imports.
Amazon, which is also headquartered in Seattle, sells more products directly from wholesalers—most of them Chinese—than anyone in the world. The company’s business is mostly supported by third-party sellers who pay to list their wares on its marketplace. Import tariffs are increasing import costs and have a disproportionate effect on price. This causes extreme pressure on sellers to keep their profit margins in check, particularly for products manufactured overseas.
The scrutiny from the White House marks a significant moment in the ongoing conversation about corporate responsibility and consumer pricing. Discount retailers such as Temu and Shein have already started charging import fees up to 145%. By doing the opposite, Amazon might be trying to shield itself from consumers’ ire when it eventually raises prices.