Packages featuring the Amazon logo are seen at a packing station in a redistribution center in Horn-Bad Meinberg, Germany, on December 9, 2024.
Ina Fassbender | Afp | Getty Images
Amazon announced on Tuesday that it considered displaying import fees for its ultra-discount items, but said this idea “was never approved and will not take place.”
This potential change would have impacted products sold on Haul, Amazon’s platform aimed at competing with the Chinese discount retailer Temu, which sells items like clothing and home goods priced under $20. Haul, launched last year, operates separately from Amazon’s main website.
“The team managing our ultra-low-cost Amazon Haul store looked into the possibility of adding import fees for certain products,” explained Amazon spokesperson Tim Doyle in a statement. “However, this was never officially approved and will not be implemented.”
According to a source familiar with the situation, Amazon considered creating a separate line for importing costs on Haul in light of President Donald Trump’s elimination of the de minimis trade loophole. They clarified that this consideration was not connected to Trump’s 145% tariff on Chinese imports.
Punchbowl News reported earlier on Tuesday that Amazon would “soon” display tariff costs alongside product prices, according to a knowledgeable source.
This report incited backlash from the White House, which termed Amazon’s alleged plans a “hostile and political act.”
“Why didn’t Amazon initiate this when the Biden administration raised inflation to the highest levels in 40 years?” questioned White House press secretary Karoline Leavitt.
Following Amazon’s clarification, Commerce Secretary Howard Lutnick praised it as a “positive step” in an X post.
Earlier Tuesday, Trump personally contacted Jeff Bezos to express his dissatisfaction regarding the Punchbowl report that triggered the reaction from the White House, a source familiar with the call informed NBC News.
Trump later told reporters that Bezos “was very pleasant and handled the issue swiftly,” adding that Bezos is “a good person.”
Amazon’s founder and major shareholder, Bezos, has sought to maintain a cordial relationship with President Trump during and leading up to his second term. Bezos dined with Trump at Mar-a-Lago and was present with leading tech executives at Trump’s inauguration. Additionally, Amazon contributed to Trump’s inaugural fund and reportedly spent $40 million to license a documentary featuring first lady Melania Trump.
As they adapt to Trump’s new tariffs, Amazon and other retailers are assessing the impact. Recently, Amazon reached out to its extensive network of third-party sellers to understand how the tariffs are influencing their logistics and sourcing. Some sellers have started raising prices and reducing their advertising budgets due to higher import expenses. Earlier this month, Amazon CEO Andy Jassy told CNBC that sellers would likely “have to transfer the burden” of tariffs to consumers.
Discount retailers Temu and Shein implemented price increases on most items last week, with Temu adding “import charges” ranging from 130% to 150% on certain products.
— Reporting contributed by CNBC’s Kevin Breuninger and NBC News’ Garrett Haake.
