Amazon is not planning to break out tariff costs online as White House attacks potential move

An Amazon truck drives in in Philadelphia, Friday, April 30, 2021. (AP Photo/Matt Rourke, file)

NEW YORK — Amazon says it’s not planning to display added tariff costs next to product prices on its site -- despite a report that sparked speculation the e-commerce giant would soon show the new import charges, and the White House’s fiery comments denouncing the purported change.

The Trump administration’s reaction appeared to be based on a misinterpretation of internal plans being considered by Amazon, rather than a final decision made by the company.

And even those talks were limited. Only Amazon’s Haul service -- its recently launched, low-cost storefront -- “considered the idea” of listing import charges on certain products, company spokesperson Tim Doyle said in a statement sent to The Associated Press. But this “was never approved and is not going to happen.”

Earlier Tuesday, Punchbowl News had reported that Amazon planned to start showing how much of each product’s cost derived from tariffs “right next to” its total listed price, citing an anonymous source familiar with the matter.

The Trump administration was quick to criticize news of the potential move. At a briefing with reporters earlier in the day, White House press secretary Karoline Leavitt accused Amazon of taking a “hostile and political act” -- and further attacked the company by suggesting it had “partnered with a Chinese propaganda arm.”

A source familiar with the matter, who spoke of the condition of anonymity, told The Associated Press that the president also called Amazon founder Jeff Bezos to complain about the reported plans Tuesday morning.

The administration seemed to change its tune following Amazon’s clarifying statement.

“Jeff Bezos was very nice. He was terrific,” President Donald Trump told reporters before leaving the White House for Michigan on Tuesday afternoon. “He solved a problem very quickly and he did the right thing. He’s a good guy.”

Bezos was one of a handful of powerful, ultra-wealthy tech titans who attended Trump’s inauguration in January -- filling some of the most exclusive seats right behind the president. But Trump’s relationship with much of the corporate world has been tested since, as the tariff wars he’s launched with nearly all of America’s trading partners continue to plunge companies into uncertainty.

Trump’s tariffs -- and responding retaliation from targeted countries, notably China -- threaten to increase prices for both consumers and businesses. Economists warn these import taxes will hike prices for a range of goods consumers buy each day and lead to worse inflationary pressure.

There’s a reason why the Trump administration responded the way it did to Tuesday’s Amazon speculation, explains Rob Lalka, a professor of business at Tulane University’s Freeman School -- noting that such quick and harsh words from the White House signals concern about companies “redirecting customer frustration.”

At the same time, volatile tariffs put a lot on the line for businesses like Amazon -- and those companies may have to play ball, too, while trying to be transparent with customers. Many CEOs across industries have recently shared weaker outlooks due to the new -- and at times on-again, off again -- import taxes. And some big names have already raised prices while specifically pointing to the costs of tariffs, including Amazon rivals Temu and Shein.

Earlier this month, Temu and Shein said in separate but nearly identical notices that their operating expenses had gone up “due to recent changes in global trade rules and tariffs” -- both announcing price hikes to take effect last Friday (April 25).

Temu, owned by the Chinese e-commerce company PDD Holdings, now lists added “import charges” -- which have reportedly doubled many items’ prices, although those available in local warehouses currently appear to be exempt. Meanwhile, Shein, now based in Singapore, has a checkout banner that reads, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”

Tariffs may now be in the spotlight like they never were before -- but companies have long itemized added costs to the things we purchase, Lalka notes, from city occupancy taxes on a hotel bill to rideshare apps like Uber breaking out local fees. And Amazon itself “already turned to this playbook” when it began collecting state sales taxes, he adds, although another line in your online shopping cart may be less apparent than potentially seeing total import taxes next to each product you scroll by.

It’s a message regardless, he explains.

“Companies are always communicating something with us when whenever they are putting things in their receipt,” Lalka said -- adding that, while Amazon later confirmed it wasn’t actually breaking out tariff prices, the idea didn’t come from nowhere. “The reality is that politics are always being played.”

Boak reported from Washington. AP writers Zeke Miller and Darlene Superville also contributed to this report.