Amazon made headlines recently when it chose not to show tariff costs next to product prices on its website. This decision came after reports suggested the company would display these extra charges, which led to strong reactions from the White House.
The Controversy Behind Amazon’s Decision
Amazon is not planning to list added tariff costs next to product prices on its site despite speculation that has spanned a report claiming the e-commerce giant would soon display new import charges. The initial report caused a stir when White House press secretary Karoline Leavitt responded to the report by torching Amazon over what she called “a hostile and political act.”
The situation escalated when Trump reportedly contacted Amazon leadership directly about the matter. The tariffs imposed by the Trump administration, including a 10% tariff on global imports and a 145% tariff on Chinese goods, have prompted companies and economic experts to warn that prices could likely rise for American consumers.
Real Impact on Product Prices
Despite Amazon’s decision not to display tariff costs separately, prices are already rising. According to e-commerce software company SmartScout, 900 products on Amazon saw increased prices since April 9, with an average increase of 29%.
Costs rose on a wide range of items, from tech accessories such as phone chargers to women’s clothing, SmartScout founder and CEO Scott Needham told CBS MoneyWatch. The data shows that about 25% of price increases in recent weeks have come from sellers based in China, according to SmartScout data.
What Amazon’s CEO Says About Future Prices
Amazon’s leadership has been honest about what shoppers can expect. Amazon CEO Andy Jassy said he thinks third-party sellers “will pass costs on” to consumers as a result of President Donald Trump’s sweeping tariffs. However, “We have not seen the average selling price of retail items appreciably go up yet,” Jassy said.
The Bigger Picture for American Consumers
The Federal Reserve has already measured the economic impact of these tariffs. Their results indicate that the 2025 tariffs have so far led to a 0.3 percent increase in core goods PCE prices, contributing to a 0.1 percent increase in core PCE prices (goods and services prices, excluding food and energy) as a whole.
How Sellers Are Adapting
Many Amazon sellers are making tough choices to stay competitive. Many U.S.-based sellers are looking for new suppliers in countries like Vietnam, Mexico, and India. This shift away from Chinese suppliers shows how businesses are trying to avoid the highest tariff rates.
What This Means for Your Shopping
While Amazon won’t show tariff costs separately, these charges are being built into product prices. The company reported strong growth despite these challenges, with Amazon reporting 10% sales growth in fiscal Q1 2025, which ended March 31.
As a shopper, you might notice gradual price increases on certain products, especially those imported from China. The good news is that many sellers are working to find alternative suppliers to keep costs down.
The debate over displaying tariff costs shows how complex trade policy can be. While Amazon chose not to break down these costs for customers, the reality is that tariffs do affect what you pay at checkout. Understanding this helps you make better shopping decisions in today’s changing trade environment.
