White House hits Amazon over 'plan' to show tariff price rises

US President Donald Trump called Amazon founder Jeff Bezos on Tuesday to complain after a report that the retail giant was planning to detail the cost of trade tariffs to its customers.

Amazon said it had looked into itemising the impact for shoppers using Amazon Haul, a low-cost site it launched in the US last year to compete with Shein and Temu.

But it said it had decided not to move forward and the idea had never been under consideration for its main platform.

The White House decision to go on the attack over the report is an indication of the pressure it is facing over its new import taxes, which analysts say will lead to higher prices for consumers and increase the chances of a recession.

At a news conference marking the president's first 100 days in office, press secretary Karoline Leavitt said she had discussed Amazon's reported move with the president and argued it represented "another reason why Americans should buy American".

"This is a hostile and political act by Amazon," she said. "Why didn't Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?"

Trump has ramped up tariffs since re-entering office in January, measures he argues will boost manufacturing and raise tax revenue for the US.

Even after rolling back some of his initial plans this month, Trump's announcements have left many foreign imports facing new duties of at least 10%, while products from China are facing import taxes of at least 145%.

The measures have prompted a sharp drop in trade between the two countries, and has raised fears of supply shocks and product shortages from baby prams to umbrellas, items for which China is a major supplier.

Some businesses are starting to detail the costs of the measures for customers, with Shein and Temu, known for business models that ship directly from Chinese manufacturers to customers, among the online platforms to already announce price hikes.

Merchants from China represent about half of the sellers on Amazon in the US, according to analysts.

Amazon's plan to detail the tariff impact for customers was first reported by Punchbowl News on Tuesday, citing an anonymous source.

Asked about the report, Amazon spokesperson Tim Doyle confirmed that the company had considered the idea of listing import charges on certain products for its Amazon Haul store.

"This was never approved and is not going to happen," he said in a statement to the BBC.

A source familiar with the Amazon discussions said they had been sparked by the end of the exemption from tariffs for shipments from China worth less than $800.

The person said the decision not to spotlight the new costs was not a response to the White House complaints on Tuesday.

But asked by reporters about his call with Mr Bezos, Trump said the billionaire, who stepped down as chief executive in 2021, had "solved the problem".

"Jeff Bezos was very nice. He was terrific. He solved the problem very quickly. He did the right thing. He's a good guy," he said.

Amazon was among the many businesses to donate money to the president's inauguration and Mr Bezos was given a seat of honour at the event.

Mr Bezos, who owns the Washington Post, met Trump after the election and has praised his push for deregulation and lower taxes.

But the two men have had a tense relationship in the past.

Trump repeatedly criticised Amazon and the Washington Post during his first term, while Mr Bezos in 2016 accused Trump of using rhetoric that "erodes our democracy around the edges" and once joked about blasting him to space in a rocket.

In 2019, Amazon filed a lawsuit against the Pentagon, alleging that it had been denied a $10bn contract due to Trump's decision to "pursue his own personal and political ends" to harm Mr Bezos, "his perceived political enemy".

Reporting contributed by Bernd Debussman Jr