Amazon faced public criticism after media reports indicated the company planned to place tariffs on its merchandise because of new U.S. import fees. Amazon, based in Seattle, flatly denied the plan after stating that their low-cost Haul unit was considered for such measures, but the initiative was ultimately abandoned. Haul faces high risks from tariffs because it depends on Chinese imports for its products in its competitive market against Temu and Shein. The announcement created market uncertainty, which resulted in a brief stock price decline for Amazon, but the shares eventually rebounded.
Internal discussions about displaying product tariffs on Haul products took place at Amazon before the company confirmed they never authorized the implementation of this measure. The White House issued a public statement through Press Secretary Karoline Leavitt, who denounced the rumored pricing plan as an aggressive political action against the Trump administration’s tariff policies. Former President Donald Trump reached out to Amazon founder Jeff Bezos to voice his dissatisfaction about the incident. Through his previous criticism, Trump specifically targeted Amazon for its ownership of The Washington Post.
This controversy emerged from Trump’s policies, which caused Chinese import tariffs to increase dramatically. The U.S. business sector, including automakers, now assesses their pricing approaches because of these developments. The Haul site faces direct consequences from these tariffs because it specializes in selling low-cost Chinese products since its launch in November 2023.
Biden administration support for tariff transparency has prompted Senate leader Chuck Schumer to demand retailers display price information that shows how tariffs impact customer costs. Amazon maintains its position that it follows all regulations while keeping its customer base at the forefront of its operations despite facing political backlash.
