Amazon found itself at the center of political controversy on Tuesday following a report that it planned to display tariffs on products sold through its platform. The White House quickly condemned the move, calling it “a hostile and political act,” even as Amazon strongly denied the claims.
The situation escalated after Punchbowl News reported that Amazon was preparing to show consumers how much of their product costs were due to U.S. tariffs—specifically those targeting low-cost Chinese goods. The White House reacted sharply, and Amazon’s stock dropped by 2% in early trading before recovering later in the day.
According to the retail giant, its lesser-known Haul division had briefly considered the idea for its budget-friendly platform that competes with the likes of Shein and Temu. However, Amazon clarified that this concept was never intended for its main site and had already been dismissed.
“The team that runs our ultra low-cost Amazon Haul store considered the idea of listing import charges on certain products. This was never approved and is not going to happen,” said a company spokesperson. “Teams discuss ideas all the time.”
The uproar comes just days before the U.S. enacts a new executive order closing the “de minimis” loophole, which has allowed small-value goods from China and Hong Kong to enter the U.S. duty-free. Effective May 2, the new rule will impact low-cost importers like Amazon Haul significantly.
Former President Donald Trump, who initiated many of the current tariffs, reportedly contacted Amazon founder Jeff Bezos directly to complain about the situation. “Jeff Bezos is very nice,” Trump said to reporters. “He solved the problem very quickly. He did the right thing.”
Despite Amazon’s denial, the political fallout continues. Senate Democratic Leader Chuck Schumer urged retailers to be transparent about the impact of tariffs on consumer pricing. Meanwhile, Trump ally Rep. Marjorie Taylor Greene expressed disappointment on X (formerly Twitter), saying she had hoped the tariff tracker would help consumers avoid Chinese products.
Amazon’s Haul platform, launched in late 2024, is especially vulnerable to tariff shifts, as it focuses on shipping low-cost Chinese goods with longer delivery times. As some third-party merchants opt out of Amazon’s upcoming Prime Day due to tariff-related concerns, the e-commerce giant is navigating an increasingly complex trade landscape.
Amazon has a history of adjusting its strategy to stay in Washington’s good graces. The company purchased a documentary on Melania Trump, contributed to Trump’s inaugural fund, and even streamed The Apprentice on Prime Video. Trump, who once feuded with Bezos, recently praised him in an interview, calling him “100 percent” and “great.”
Still, the White House has not forgotten Amazon’s past connections to China. Spokesperson Karoline Leavitt referenced a 2021 Reuters report stating that Amazon had partnered with a Chinese propaganda outlet to strengthen its position in the country. “This is another reason why Americans should buy American,” she said.
With tensions flaring over trade policy and e-commerce power dynamics, this episode underscores the fine line companies like Amazon must walk between business interests and political pressures.
