White House Denounces Proposed Strategy Linking Tariffs to Amazon Product Costs as Hostile
Redrafted Article:
Amazon's Tariff Transparency Move Sparks White House Outrage
White House Press Secretary Karoline Leavitt slammed a reported plan by Amazon to disclose tariff costs on product prices, branding it a "hostile" and "politically-driven" act.
According to Punchbowl News, Amazon wants to display tariff charges alongside the total price of goods to evade accusations of increases in product costs. During a press conference, Leavitt voiced her disapproval, stating, "This is a blatantly hostile and political move by Amazon. Why didn't Amazon do this when inflation soared to record highs under the current administration?"
Tim Doyle, an Amazon spokesperson, clarified that while the team behind the low-cost platform, Amazon Haul, contemplated incorporating tariff charges, the idea was ultimately scrapped. According to Doyle, "The strategy was never approved and won’t be implemented."
Commerce Secretary Howard Lutnick approvingly responded to the news with a simple "Good move," via X.
Some experts argue that tariffs have negatively affected consumer sentiment, contributing to a dip in the Michigan Consumer Sentiment Index earlier this year. As Americans expressed concerns about import costs driving up prices, President Trump temporarily halted "reciprocal" tariffs, implemented to tackle trading deficits, with most of the country's trade partners.
Tariffs have been subject to frequent revisions by Trump, who has dictated separate policies for goods from China, cars, auto parts, certain metals, and items defying the US-Canada-Mexico trade agreement. Under the current setup, products from China face tariffs totaling 145%, whereas a 10% tariff applies to reciprocal duties, likely to rise in early July.
The threat of higher prices is real, according to economic analysts, with companies like Procter & Gamble (PG), L'Oreal, and Hermès expressing intentions to hike their prices. Many others are taking a wait-and-see approach, keen to observe developments in US trade policy before making changes to their supply chains.
Amazon shares dipped slightly in recent trade, with the company set to release its latest financial results post-market on Thursday.
This article has been updated since its initial publication to include the latest market data and additional context.
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- The White House criticized Amazon's proposed move to display tariff charges on product prices, claiming it as a politically-driven and hostile act.
- Experts suggest that tariffs have negatively impacted consumer sentiment, contributing to a drop in the Michigan Consumer Sentiment Index.
- President Trump temporarily halted reciprocal tariffs in response to consumer concerns about import costs driving up prices.
- In the current setup, products from China face tariffs totaling 145%, while a 10% tariff applies to reciprocal duties, set to rise in early July.
- Companies like Procter & Gamble, L'Oreal, and Hermès have expressed their intention to increase prices due to the threat of higher tariffs.
- The latest update on this article includes the latest market data and additional context, as Amazon prepares to release its financial results post-market on Thursday.
