This comes on the heels of Amazon announcing its own intention to make tariff costs more apparent to consumers. Then, they’ll demonstrate just how much of each product’s price stems from those tariffs. Later that day, the company did indeed confirm that the plan would not proceed. This announcement caused an immediate response from the White House.
White House press secretary Karoline Leavitt specifically condemned Amazon’s original intentions in the harshest of terms. She denounced them as a “hostile and political act” in concert with a Chinese propaganda arm. How could the Trump administration respond so quickly and so strongly? Their response showed their misreading of Amazon’s behind-the-scenes discussions regarding increased transparency on tariffs.
Amazon’s entanglement with the Trump administration has been an especially fraught saga. Most notoriously, Amazon founder-turned-Washington Post owner Jeff Bezos was present at Trump’s inauguration last January. He occupied one of the Special Reserved seats immediately behind the president. Tariff backlash The Trump administration is responding to this possible display of tariff costs. All of this response reflects a move towards increased oversight of harmful corporate practices.
Yet economists have sounded the alarm on the costs of these tariffs, arguing that they raise consumer prices and increase inflation. Business groups have said that tariffs would raise prices by substantial amounts on many products that consumers buy every day. Hence, tariffs might just be well poised to attract unprecedented bad press in the court of public opinion—from Democrats and Republicans alike.
This continued discourse on tariffs comes as many other companies have begun to reevaluate their pricing policies as well. As an example, Temu and Shein have both recently begun increasing prices as a result of changes in global trade rules and tariffs that have recently been enacted. Promotional prices recently have been replaced by added “import charges,” causing a dramatic price hike on most items, according to reports. Shein has adopted a more straightforward approach by including a checkout banner stating, “Tariffs are included in the price you pay.”
Historically, companies have itemized additional costs for consumers. Local city occupancy taxes on your hotel bills, and local fees on your rideshare app like Uber’s, all stack on your bottom line. Most businesses openly list these additional fees that affect price. Rob Lalka, an industry expert, noted, “Companies are always communicating something with us whenever they are putting things in their receipt.”
This doesn’t mean that all CEOs have reacted in the same way. No surprise then that many of them are now lowering their outlook due to the unexpected import taxes. As our business community continues to adjust to the rapidly changing world of trade, these changes are being watched very carefully by our business community.
