The White House has openly criticized Amazon's decision to incorporate tariff costs directly into product prices, calling it a 'hostile and political act'. According to Reuters, Press Secretary Karoline Leavitt voiced that this move is not simply about transparency but a politically charged message aimed at the current administration.
Amazon has embarked on this strategy to show consumers exactly how tariffs affect the prices of the products they purchase. The goal is to enhance transparency around tariff impacts. However, Axios highlights that this could influence participation in upcoming events such as Amazon Prime Day, particularly if sellers of Chinese-made products decide to pull out due to the visible cost increases.
Facing the pressure of higher tariffs, Amazon is encouraging suppliers to decrease prices on Chinese imports to absorb some of these additional costs. The Financial Times reports that some sellers are already reconsidering their plans for Prime Day, indicating fewer discounts and a more limited selection, as they try to cope with the heightened expense of doing business.
