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Following strategies from rivals like Shein and Temu, Amazon was preparing to disclose how tariffs affected the prices of products sold on its platform. However, a leaked internal report sparked swift backlash from the Trump administration, leading to a personal call from President Trump to Amazon founder Jeff Bezos, according to Fox News.
The leaked report. Punchbowl News first reported the existence of the internal Amazon document, which floated the idea of showing tariff costs alongside prices, much like taxes or shipping fees. The strategy would have aligned Amazon with competitors that have started adjusting prices due to tariffs on Chinese goods.
The White House responds. As BBC reported, the White House wasted no time firing back. Press Secretary Karoline Leavitt slammed the idea, calling it “a hostile and political act by Amazon.” She added, “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”
Leavitt even cited a 2021 Reuters report accusing Amazon of working with “China’s propaganda arm” to suppress negative reviews of a book featuring speeches by Chinese President Xi Jinping.
Commerce Secretary Howard Lutnick echoed the criticism in an interview with CNBC, calling the potential change “absurd.” “A 10 percent tariff is not going to change virtually any price,” he said, dismissing the significance of tariffs—even though Statista reports that 71% of products sold on Amazon are made in China, some facing tariffs up to 145%.
Trump makes the call. The controversy escalated to the Oval Office, where Trump reportedly called Bezos directly. Though Bezos is no longer Amazon’s CEO, he remains a powerful figure within the company.
According to Trump’s own statements, the conversation was brief and effective. “Great, Jeff Bezos was very nice, he was terrific. He solved the problem very quickly. He did the right thing, he’s a good guy,” Trump said.
Amazon walks it back. Soon after the call, Amazon issued a public statement clarifying that the leaked proposal was only a preliminary idea from the Amazon Haul team, which focuses on inexpensive, China-made products. The company stressed that no such changes were ever considered for Amazon’s homepage or broader product listings.
Leavitt later softened her stance, saying, “I’m not going to discuss the president’s relationship with Jeff Bezos,” though tensions between the two go back to Trump’s first term, particularly regarding postal fees tied to Amazon deliveries.
Wall Street reacts. Following the White House’s reaction, Amazon’s stock fell 2.3% on fears of political retaliation. But the dip was short-lived. Shares quickly rebounded as the company reaffirmed business as usual.
Image | National Museum of American History Smithsonian Institution | Gage Skidmore
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