Amazon Refutes Tariff Display Plans After White House Criticism; Stock Temporarily Dips

US • Business • 04/29 17:02
Amazon Refutes Tariff Display Plans After White House Criticism; Stock Temporarily Dips

Amazon denied reports of plans to display U.S. tariff costs on product listings after the White House criticized the alleged move as "hostile and political." The report by Punchbowl News led to a 2.2% drop in Amazon's stock during premarket trading, which later stabilized. Amazon clarified that the idea was discussed internally for its Amazon Haul store but was never approved. The incident highlights tensions between Amazon and the Trump administration amid new tariffs on imports, particularly from China, and reflects investor sensitivity to political and regulatory risks.

Key Updates

05/01 18:32

U.S. Manufacturing Hits Five-Month Low Due to Tariff Pressures; Nasdaq Surges on Tech Earnings as Jobless Claims Rise

U.S. manufacturing activity fell to a five-month low in April, with the ISM PMI dropping to 48.7 due to tariff-related pressures. Despite this, the Nasdaq Composite rose over 2% following strong earnings from Microsoft and Meta. Weekly jobless claims increased to a two-month high, with continuing claims at their highest since November 2021, indicating a cooling labor market. Treasury yields rose as rate cut expectations eased. The market remains volatile amid ongoing tariff uncertainties, with some companies like General Motors and Dominion Energy reporting significant financial impacts.

05/01 16:31

Trump's 145% Tariff on Chinese Imports Halts U.S.-China Trade, Disrupts Economy

President Donald Trump's 145% tariff on nearly all Chinese imports, announced on April 2, has led to a significant decline in U.S.-China trade. Container ship departures from China to the U.S. have decreased by a third, and ocean freight bookings have dropped by 60%. The U.S. economy contracted by 0.3% in the first quarter of 2025, with canceled shipments and manufacturing halts. Industries reliant on Chinese imports, like fireworks, face shortages. The tariff has prompted retaliatory measures from China and criticism of Trump's trade policies, which have not boosted U.S. growth as intended.

05/01 13:31

Mercedes-Benz to Manufacture New Core Vehicle in Alabama by 2027 Amid U.S. Tariff Challenges

Mercedes-Benz will begin manufacturing a new 'core segment' vehicle at its Tuscaloosa County plant in Alabama in 2027. This decision highlights the company's commitment to U.S. manufacturing and its strategy to localize production amid trade tensions and tariffs under the Trump administration. The Alabama plant, a major export hub for Mercedes-Benz SUVs, will play a crucial role in the company's North American operations. The move is part of Mercedes-Benz's 'local-for-local' strategy to mitigate trade risks by producing vehicles in the markets where they are sold.

05/01 12:31

U.S. Tariffs on Chinese Baby Gear Strain Families and Retailers Amid Economic Slowdown

In early 2025, the Trump administration imposed a 145% tariff on Chinese imports, including baby products like car seats and strollers, leading to price hikes of up to 30%. This has strained American families and small businesses, as most baby products are imported. Industry leaders and lawmakers are calling for exemptions, arguing the tariffs undermine safety and affordability. Despite backlash, the administration maintains the tariffs to boost domestic manufacturing, though U.S. production capacity is insufficient. The economic slowdown, with a 0.3% GDP contraction, exacerbates the impact on household budgets.

05/01 08:31

U.S. Ends Duty-Free Exemption on Chinese Parcels: Price Hikes and Shipping Delays Expected

On May 2, 2025, the U.S. ended the duty-free exemption for low-value parcels from China and Hong Kong, eliminating the 'de minimis' rule for goods under $800. This policy, initiated by the Trump administration, imposes tariffs up to 145% and customs scrutiny, affecting consumer prices and delivery times. Businesses are adjusting logistics, with some shifting to U.S. warehousing. The change benefits domestic manufacturers but challenges e-commerce platforms like Shein and Temu, reshaping global supply chains and consumer behavior.

04/29 17:02

Amazon Refutes Tariff Display Plans After White House Criticism; Stock Temporarily Dips

Amazon denied reports of plans to display U.S. tariff costs on product listings after the White House criticized the alleged move as "hostile and political." The report by Punchbowl News led to a 2.2% drop in Amazon's stock during premarket trading, which later stabilized. Amazon clarified that the idea was discussed internally for its Amazon Haul store but was never approved. The incident highlights tensions between Amazon and the Trump administration amid new tariffs on imports, particularly from China, and reflects investor sensitivity to political and regulatory risks.

04/29 09:30

Trump's Tariff Strategy Prompts IBM's $150 Billion U.S. Investment Amid Consumer Sector Concerns

IBM announced a $150 billion investment to enhance U.S. leadership in mainframe and quantum computing, aligning with former President Donald Trump's tariff-driven 'America First' policy. This policy, imposing tariffs up to 145% on Chinese imports, aims to reduce the trade deficit and boost domestic manufacturing. While IBM benefits, consumer goods companies like PepsiCo and Diageo face rising costs and profit pressures due to these tariffs. The policy has caused supply chain disruptions and increased operational uncertainty, highlighting a divide between sectors benefiting from and those struggling under the policy.

04/29 02:33

Temu Raises Import Fees by 145% Due to Trump's Tariff on Chinese Goods, Impacting U.S. Shoppers

Chinese e-commerce platform Temu has imposed import charges on U.S. customers, with fees up to 145% due to a tariff policy by former President Donald Trump. This policy, effective May 2, includes a 145% tariff on Chinese imports and ends the de minimis exemption for goods under $800. Temu's charges have significantly increased prices for items like clothing and electronics. To mitigate this, Temu labels some products as stored in U.S. warehouses, exempting them from charges. Competitor Shein includes tariffs in listed prices, offering a different approach.

04/28 21:31

U.S. Aviation Industry Urges Trump Administration for Tariff Exemptions Amid Economic Struggles

The U.S. aviation industry is urging the Trump administration to lift tariffs on aircraft and parts, which were previously duty-free under the 1979 Civil Aircraft Agreement. These tariffs, including a 10% duty, are exacerbating financial pressures amid a sector recession marked by declining travel demand and rising costs. Industry leaders, including Southwest Airlines CEO Bob Jordan, highlight the impact on operations and margins. Airlines like Delta and American are scaling back growth plans, while manufacturers like Boeing face significant cost increases. The industry argues that tariff relief is crucial to maintaining competitiveness and supporting U.S. exports.

04/28 13:30

U.S. Agriculture Faces Crisis: Tariffs Lead to Canceled Orders, Layoffs, and Reduced Chinese Purchases

The U.S. agricultural sector faces a crisis due to escalating tariffs, leading to canceled export orders, layoffs, and reduced Chinese purchases. The Agriculture Transportation Coalition highlights significant financial losses as China shifts to suppliers like Brazil. The USDA reports a major cancellation of U.S. pork shipments to China. The crisis affects rural economies, with layoffs and unsold inventory. The Port of Oakland, reliant on exports, is also impacted. U.S. farmers and exporters are urging policy reversals to mitigate the trade war's effects, as China continues to diversify its agricultural imports.

White House Reacts to Unconfirmed Report

The uproar began early Tuesday when Punchbowl News reported that Amazon was preparing to show the portion of a product’s price attributable to tariffs imposed by President Donald Trump. The report, citing an unnamed source, claimed the information would be displayed next to the total price of affected items.

White House Press Secretary Karoline Leavitt responded swiftly and forcefully during a morning press briefing, calling the alleged move “a hostile and political act by Amazon.” She added that she had just spoken with President Trump about the matter and emphasized that the administration viewed the reported plan as an attempt to politicize trade policy.

“This is another reason why Americans should buy American,” Leavitt said, further accusing Amazon of previously partnering with a “Chinese propaganda arm,” referencing a 2021 Reuters report. The White House also tweeted a link to that report, though it did not immediately comment after Amazon issued its denial.

Amazon Issues Denial, Clarifies Internal Discussions

In response to the growing backlash, Amazon released multiple statements denying that it had any intention of listing tariff costs on its main retail platform. A spokesperson clarified that while the idea had been discussed internally by the team managing Amazon Haul—a separate storefront offering low-cost goods from overseas sellers—it was never approved or implemented.

“The team that runs our ultra low cost Amazon Haul store considered the idea of listing import charges on certain products,” Amazon spokesperson Rachael Lighty told USA Today. “This was never approved and is not going to happen.”

Tim Doyle, another Amazon spokesperson, reiterated the company’s position to Deadline, stating, “Nothing has been implemented on any Amazon properties.” The company emphasized that the main Amazon site was never part of any such plan.

Market Response: Shares Dip, Then Recover

The market reacted quickly to the initial report and the White House’s condemnation. Amazon’s stock (NASDAQ: AMZN) fell 2.2% in premarket trading on Tuesday morning. However, after the company’s denial and clarification, shares rebounded and were trading nearly flat by midday.

The brief dip reflects investor sensitivity to political tensions and regulatory risks, particularly as Amazon remains under scrutiny from both lawmakers and the executive branch. The company’s clarification helped stabilize its market position, though the episode highlighted the volatility that can arise from unverified reports and political reactions.

Broader Trade Context: Tariffs and Retail Pressures

The controversy comes amid a broader escalation in U.S. trade policy under President Trump. Earlier this month, the administration imposed sweeping new tariffs, including a 145% rate on imports from China. Trump also signed an executive order closing the “de minimis” loophole, which had allowed low-value packages from China and Hong Kong to enter the U.S. duty-free. That order is set to take effect on May 2.

Retailers, including Amazon, have expressed concern over the impact of these tariffs on consumer prices. Amazon CEO Andy Jassy recently told CNBC that the company had made “strategic forward inventory buys” to mitigate price increases. However, third-party sellers on Amazon’s platform—especially those sourcing goods from China—are reportedly scaling back participation in major sales events like Prime Day due to rising costs.

According to Reuters, some merchants are either sitting out this year’s Prime Day or reducing the volume of discounted merchandise they offer, citing the financial strain of the new tariffs.

Political Undertones and Corporate Tensions

The dispute between Amazon and the Trump administration is the latest flashpoint in a long-running and often public feud between the former president and Amazon founder Jeff Bezos, who also owns The Washington Post. On Tuesday, multiple outlets reported that Trump personally called Bezos to express his displeasure over the reported plan to disclose tariff costs.

While Amazon has denied any political motivation, the White House’s reaction suggests that even the suggestion of increased pricing transparency related to tariffs is seen as a challenge to the administration’s narrative. Trump has repeatedly claimed that tariffs are paid by foreign exporters, though economists widely agree that the costs are typically passed on to U.S. businesses and consumers.

The administration’s aggressive stance on trade has drawn criticism from various sectors, including automakers and consumer goods companies, who warn that the tariffs could significantly raise prices for American shoppers.

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