UPDATE: Amazon has seemingly caved to White House pressure and confirmed that it will not display tariff costs on product pages.
EARLIER: Nintendo famously kept the Nintendo Switch 2 price in the US in place despite the impact of Trump’s tariffs, but even Nintendo raised prices on some accessories. Other retailers, including Chinese retailers Temu and Shein, increased prices by as much as 300%. Some of these vendors already display the cost of tariffs during checkout, screenshots of which have started showing on social media. But seeing tariff costs on some products sold on Amazon might be an even bigger shock for American consumers. The retail giant is apparently considering showing customers exactly how much tariffs have tacked onto the price of some products. The move has already angered the Trump administration, which called it “a political act.”
Regardless of whether or not Amazon moves forward with the plan, several reports indicate that price hikes are inevitable for many Amazon sellers. Also, some Amazon sellers might decide to skip the upcoming Amazon Prime Day event, as they’re worried that Prime Day deals may destroy their bottom lines.
A person familiar with Amazon’s plans supposedly told PunchBowl News that the retailer will show how much Trump’s tariffs are adding to the price of each product next to the product’s listing price.
The White House slammed Amazon immediately on Tuesday morning in response to the report. “This is hostile and political act by Amazon,” White House press secretary Karoline Leavitt said. “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.”
An Amazon spokesperson confirmed to CNBC that Amazon has considered listing tariffs, but not for all products that will see China tariff-related price hikes in the near term. Instead, Amazon wanted to list tariff charges on some products for Amazon Haul, its budget shopping section:
The team that runs our ultra low cost Amazon Haul store has considered listing import charges on certain products. This was never a consideration for the main Amazon site and nothing has been implemented on any Amazon properties.
It’s unclear whether Amazon will go through with showing tariff costs for products, given the backlash from the White House. Amazon stock also took a hit in premarket trading following the White House remarks.
A different report from CNBC showed last week that some Amazon retailers are raising prices in response to the tariffs. Separately, Reuters reported Monday that some Amazon retailers might have to sit out the Amazon Prime Day event coming this summer, which is a massive shopping bonanza for both Amazon and third-party retailers.
These reports cite accounts from various Amazon vendors who manufacture their products in China, and they’re scrambling to deal with the shock of tariffs while waiting for Trump to bring clarity to the trade war. Some are hoarding stock to navigate these months. Others might be letting go of staff and revising advertising budgets.
Some are even considering moving manufacturing outside China to avoid potentially high tariffs. But none of the instances these reports quote mention bringing production back to the US so Americans can buy American. Like Apple, smaller Amazon vendors are looking to other international production hubs, such as India, Mexico, Vietnam, and Cambodia.
Whether those tariff-related costs show up on Amazon or not, price hikes for items imported from China are inevitable for the foreseeable future. Vendors will not eat up the costs associated with importing goods from China, or won’t do it entirely. Pending a new trade deal between the US and China, the tariffs will eat into profits, so vendors will have to pass them on to consumers, much to the surprise of those buyers who thought China would pay for the tariffs.
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