Amazon.com Inc. on Tuesday, April 29, stated that it had never had plans involving widely displaying the cost of tariffs imposed by the President of the United States Donald Trump on goods.
In this case, it is noteworthy that the mentioned e-commerce giant denies any involvement in the specified intentions after the White House blasted the first reports in the information space that the company is considering the possibility of displaying the cost of levies.
In an official statement from Amazon, it was noted that the team that runs its ultra-low-cost Haul store has considered the idea of listing import charges on certain products. It was also highlighted separately that the teams are constantly discussing relevant ideas. Besides, the e-commerce giant stated that such an intention was never considered in the context of the possibility of its application for the main Amazon website. It was also noted that nothing was implemented on any of the company’s properties.
The White House drew attention to a media report that Amazon will soon begin displaying the cost of US tariffs on individual products next to the total listed price. Washington, as a political center, negatively assessed this information. White House Press Secretary Karoline Leavitt blasted the purported plans of Amazon as a hostile and political act. During the briefing, she asked why the e-commerce giant did not realize such intentions when, under the administration of former United States President Joe Biden, inflation in the country rose to the highest level in the last 40 years. Karoline Leavitt said that she had spoken to Donald Trump about the alleged plans of Amazon, published by the media. The White House Press Secretary also criticized the e-commerce giant for complying with censorship demands by the Chinese government.
At the opening of trading in New York, the value of Amazon’s shares showed a 2.1% decline. In this case, the impact factor was comments from the White House. It is worth noting that over time, the e-commerce giant’s securities pared losses.
This week, Amazon will publish the earnings report. The value of the company’s shares has fallen by more than 20% since the record high fixed in February.
It is worth noting that currently, brands such as Temu and fast-fashion giant Shein Group Ltd. are bracing for 120% levies on many goods. These intentions were formed against the background of the decision of the United States Government to end the de minimis exemption for small packages from mainland China and Hong Kong. Some Amazon shipments also qualify for that exemption. However, the company also buys goods in bulk, which it ships to its US warehouses.
Amazon launched the Haul service last year. As part of this service, items are supplied directly from sellers, including in China. According to media reports, the launch of Haul is a kind of reaction of the e-commerce giant to the rise of Temu, the low-cost shopping app that gained traction despite the long shipping time. This brand is on a growth trajectory largely due to duty-free shipments of products valued under $800.
The media, citing an anonymous insider, published information according to which Amazon’s prospective import charge disclosure was related to the end of the mentioned de minimis exemption, and not to the tariff plans of the White House.
In recent years, exporters have actively benefited from the specified exemption. In this case, goods valued at under $800 could enter the United States without any tariffs or customs duties.
Karoline Leavitt did not respond to a question from reporters about whether the current information background had an impact on the relationship between Donald Trump and Amazon founder Jeff Bezos. The media claim that Mr. Bezos has recently sought to curry favor with the President of the United States. It is worth noting that during his first term as president, Donald Trump clashed frequently with the founder of Amazon.
United States Treasury Secretary Scott Bessent, who attended the press briefing, said any move to highlight tariffs was unfair when the costs of policies implemented by other administrations, including regulations, were not broken out. He also noted that the big tax on consumers that goes unnoticed is deregulation or regulation, and Washington is deregulating and bringing that down. Moreover, Scott Bessent stated that in terms of household income, an increase in real purchasing is expected, which, according to him, has already been observed after the January inauguration of Donald Trump. He also predicts a further acceleration of this dynamic.
This week, the media published the results of a survey according to which almost 60% of the public believe that Donald Trump’s policies have contributed to the deterioration of the economic situation in the country. It is worth clarifying that this survey was conducted by journalists. Moreover, 60% of respondents said that Donald Trump’s actions increased their cost of living. About 70% of the survey participants believe that an economic recession is somewhat likely next year.
As we have reported earlier, Amazon Invests $41 Million in Amazon Pay India.
