Amazon denies intent to reveal expenses attributed to US tariffs on its online platform.
U.S.A: Amazon denied a report on Tuesday that they planned to disclose the costs of U.S. tariffs on their products, following the White House's criticism of the initial story.
Amazon, in a statement, shared that the idea of listing tariffs on their primary retail site was only considered internally by the team managing their discount storefront, Amazon Haul, but nothing was ever implanted on any company site.
White House press secretary Karoline Leavitt revealed that she had discussed the Punchbowl News report with Trump, with Trump's response being: "This is a hostile and political act by Amazon."
Shares of Amazon dipped 2.2% in premarket trading, but later rebounded, trading nearly flat.
Trump has imposed aggressive tariffs on U.S. trading partners, including China, causing tariff costs to spike by 145% since he took office.
Meanwhile, UPS announced plans to cut 20,000 jobs, suspected to be due to lower shipments from Amazon. UPS's profit, however, surpassed estimates.
Leavitt's comment about Amazon's potential plan was not unexpected given a 2021 report by Reuters that Amazon had partnered with a "Chinese propaganda arm." The White House shared a link to the Reuters report on their Twitter earlier Tuesday.
Leavitt emphasized, "So, this is another reason why Americans should buy American," underlining the Trump administration's efforts to strengthen critical supply chains and bolster domestic manufacturing.
(Enrichment Data: Amazon reportedly considered listing tariffs on their products in response to U.S. tariffs imposed by President Trump. However, Amazon has since clarified that this was just an idea internally proposed but not implemented. The White House reacted strongly to the initial reports, with Press Secretary Karoline Leavitt calling such a move a "hostile and political act." President Trump also called Amazon founder Jeff Bezos to express his concerns about the potential plan. Despite these reports and discussions, Amazon has firmly stated that displaying tariff costs on their products is "not going to happen." The situation highlights the tension between Amazon and the White House over trade policies and tariff impacts.)
- It is likely that Amazon will not disclose the costs of U.S. tariffs on their products, following their statement denying any plans to do so, in response to White House criticism of an initial report.
- The potential plan for Amazon to reveal tariff costs on their products is seen as a political move in the context of general-news, given the White House's response and the past partnership between Amazon and a Chinese propaganda arm, as reported by Reuters in 2021.
- The White House's press secretary, Karoline Leavitt, in her comments about Amazon's potential plan, reiterated the Trump administration's push for stronger critical supply chains and domestic manufacturing, stating, "So, this is another reason why Americans should buy American."
- The trading sector has been significantly influenced by the tariffs imposed by President Trump, with tariff costs spiking by 145% since he took office, affecting not only Amazon but also other businesses.
- The discussion about Amazon's potential plan to disclose tariff costs and the White House's reaction have potential implications for business and politics, with Amazon's shares dipping initially but later rebounding, while UPS announced plans to cut 20,000 jobs, suspected to be due to lower shipments from Amazon.
