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When Amazon considered showing consumers exactly how much Trump's tariffs added to their bills, the White House erupted in fury, calling it "hostile" and triggering a presidential phone call that changed everything in hours.
Ever wondered what happens when America's second-largest retailer crosses a president known for picking fights with corporate giants? We found out Tuesday when a brief but explosive confrontation erupted between Amazon and the White House over a seemingly simple question: should consumers see exactly how much of their purchase price comes from Trump's new tariffs?
The answer, apparently, is a resounding presidential "no."
The drama kicked off Tuesday morning when Punchbowl News reported that Amazon planned to display how much of a product's price came from tariffs—essentially creating a digital receipt line item showing consumers exactly how much the administration's trade policies were costing them at checkout.
White House Press Secretary Karoline Leavitt wasted no time condemning the move in unusually strong terms during a Tuesday briefing.
"This is a hostile and political act by Amazon," Leavitt declared, questioning why the company hadn't made similar displays during Biden-era inflation. "Why didn't Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?"
Within hours, Amazon spokespeople were scrambling to downplay and ultimately retract the plan, claiming it had only been considered for their budget Amazon Haul platform and "was never approved and is not going to happen."
What happened behind the scenes? President Trump personally picked up the phone and called Amazon founder Jeff Bezos to express his displeasure—a rare direct intervention that underscores both the administration's sensitivity about consumer reactions to tariffs and Trump's hands-on approach to corporate relations.
By day's end, Trump was publicly praising Bezos, telling reporters: "Jeff Bezos is very nice. He solved the problem very quickly. He did the right thing."
To understand why this dispute matters, you need to know about Amazon Haul—the retail giant's newest weapon in the battle against ultra-cheap Chinese marketplaces.
Launched in November 2024, Amazon Haul is a direct response to Temu and Shein, the Chinese-founded shopping apps that have exploded in popularity by offering ridiculously cheap products shipped directly from China. Haul features products under $20 (most under $10) and operates as a separate shopping experience within the Amazon app.
"Finding great products at very low prices is important to customers," said Dharmesh Mehta, VP of Worldwide Selling Partner Services at Amazon, when announcing the service last November.
What makes Haul especially vulnerable to tariffs? Unlike Amazon's main marketplace, many Haul products ship directly from manufacturers in China, bypassing Amazon's U.S. warehouses—making them directly subject to the very trade policies now at the center of this dispute.
At the heart of this conflict is a trade provision called "de minimis"—a Latin term meaning "about minimal things" that has become anything but minimal in its economic impact.
This longstanding trade exemption allows packages valued under $800 to enter the U.S. without paying duties or going through standard customs procedures. Originally designed to reduce paperwork for low-value shipments, it has become a crucial competitive advantage for platforms like Temu, Shein, and yes, Amazon Haul.
The numbers are staggering—shipments under the de minimis exemption rose from 140 million in 2014 to over 1 billion in 2023, with 30-40% coming from China.
On April 3, Trump signed an executive order ending this exemption for packages from China and Hong Kong effective May 2, 2025. Under the new policy, these shipments will face either a 30% tariff or a minimum $25 fee per package (rising to $50 on June 1).
This change directly impacts Amazon Haul's business model. Reports indicate Amazon Haul has relied heavily on the de minimis exemption to offer competitive prices against Chinese rivals. The Reuters news agency reported that Amazon Haul allows "marketplace merchants to ship $5 accessories and other items directly from China using de minimis."
The "de minimis" exemption is a trade provision allowing packages valued below a certain threshold ($800 in the U.S. before May 2025) to enter without duties or standard customs checks.
An executive order ended the de minimis exemption for packages from China/Hong Kong, effective May 2, 2025.
The $50 minimum fee would apply instead of the 30% ($3.60), making the import cost $50. Total cost: $12 (Product) + $3 (Shipping) + $50 (Min Fee) = $65.00!
Note: Actual prices will be higher due to the base 145% tariff and potential retailer markups.
Amazon Haul (launched Nov 2024) directly competes with Temu/Shein, featuring cheap items often shipped from China, relying heavily on the now-removed de minimis exemption.
The presidential phone call to Bezos represents a remarkable evolution in their relationship. During Trump's first term, the two billionaires were bitter antagonists.
Trump regularly attacked Bezos on Twitter (now X), calling The Washington Post (which Bezos owns) the "Amazon Washington Post" and accusing Bezos of using the newspaper as a "lobbyist" while Amazon avoided taxes. Trump even pressured the Postmaster General to raise Amazon's shipping rates.
What changed? Since Trump's 2024 election victory, Bezos has made a series of moves that suggest a strategic realignment:
This context helps explain why a direct call from Trump could prompt such a rapid reversal from Amazon. The dispute over tariff transparency threatened to derail a carefully cultivated relationship between two of America's most powerful figures.
Trump attacks Bezos, claiming WaPo ownership is used to lower Amazon's taxes.
"The @washingtonpost loses money (a deduction) and gives owner @JeffBezos power to screw public on low taxation of @Amazon. Big tax shelter"
Trump reportedly urges Postmaster General to raise Amazon's shipping rates (unsuccessfully).
Trump suggests Washington Post employees should go on strike over pay.
"Washington Post employees want to go on strike because Bezos isn't paying them enough. I think a really long strike would be a great idea."
WaPo maintains critical coverage, tracking 30k+ false/misleading claims by Trump.
Amazon loses $10B Pentagon JEDI contract to Microsoft; claims Trump bias influenced decision.
WaPo supports Trump's impeachment after Jan 6 riot; compiles video archive.
Amazon launches "Amazon Haul" budget platform, relying on de minimis for direct China shipping.
Post-assassination attempt, Bezos privately contacts Trump offering sympathy & VP suggestion (Burgum).
Bezos reportedly blocks WaPo from publishing its planned Harris endorsement.
Bezos publicly congratulates Trump on election win: "extraordinary political comeback and decisive victory."
Bezos dines with Trump at Mar-a-Lago; later says Trump is "calmer" and "grown."
Bezos attends Trump's inauguration after Amazon donates $1M.
Bezos shifts WaPo opinion focus to "personal liberties and free markets"; editor resigns.
Trump signs order ending de minimis for China (effective May 2), impacting Amazon Haul.
Following reports of Amazon planning to show tariff costs, Trump calls Bezos. Amazon quickly denies the plan.
While Amazon won't be highlighting tariff costs, the financial impact on consumers is becoming increasingly evident.
Trump's sweeping tariffs—including a 10% baseline on global imports and a massive 145% tariff on Chinese goods—are already driving price increases. E-commerce software company SmartScout found approximately 900 products on Amazon saw price hikes averaging 29% since April 9.
The retail industry is sounding alarms. CEOs of major retailers including Walmart, Target, and Home Depot reportedly warned the White House last week that these tariffs would lead to higher prices and potential inventory shortages.
Gene Seroka, executive director of the Port of Los Angeles, was blunt about the immediate impact: "Folks are not shipping out of China right now because they're not going to pay two and a half times for those goods."
For budget-conscious shoppers, the math is simple but painful. A $10 product from China that previously entered duty-free could now cost $14.50 after the 145% tariff is applied to its manufacturing cost. That's assuming retailers don't add their own markup to the increased base cost—which many will.
While Amazon backed down, other retailers are taking different approaches to the tariff challenge:
Major U.S. retailers face a difficult choice: absorb the tariff costs and hurt profit margins, or pass them to consumers and risk losing sales. Many are doing both while scrambling to find alternative suppliers outside China.
For Amazon, the dilemma is particularly acute. Third-party sellers represent roughly 60% of Amazon's retail business, with Chinese merchants comprising "a significant portion" by the company's own admission. How these sellers respond to tariffs will significantly impact Amazon's marketplace dynamics.
Amazon's brief consideration of displaying tariff costs reveals a key tension in retail strategy: Should companies explicitly show consumers how government policy affects prices (risking political backlash) or quietly integrate costs into higher prices (risking consumer confusion)?
Temu's decision to display import charges versus Amazon's rapid reversal represents two different approaches to this dilemma. The White House reaction suggests a strong preference for the latter approach.
| Date | Event | Consumer Impact |
|---|---|---|
| April 3, 2025 | Trump signs executive order ending de minimis exemption for China | Initial uncertainty, some retailers begin planning for changes |
| April 9-29, 2025 | First wave of price increases on Amazon and other platforms | ~29% average price increase on affected products |
| May 2, 2025 | De minimis exemption officially ends for China/Hong Kong | 30% tariff or $25 minimum fee per package takes effect |
| June 1, 2025 | Minimum fee increases | Minimum fee rises to $50 per package |
| Summer 2025 (Projected) | Supply chain reshuffling | Temporary inventory gaps possible as retailers shift sourcing |
According to reports, Amazon considered displaying how much of a product's price was derived from tariffs next to the listed price, which would have made the impact of the administration's trade policies immediately visible to consumers.
The administration viewed it as an attempt to blame government policy for price increases, potentially turning consumer sentiment against the tariffs. Press Secretary Leavitt specifically asked why Amazon hadn't highlighted costs from Biden-era inflation.
It's a trade provision that allowed packages valued under $800 to enter the U.S. duty-free. This loophole has been crucial for platforms like Temu, Shein, and Amazon Haul that ship inexpensive products directly from China. Trump's order ending this exemption takes effect May 2, 2025.
Their relationship has evolved dramatically. After years of public feuding during Trump's first term, Bezos has made several moves since Trump's 2024 election victory that suggest a strategic realignment, including attending Trump's inauguration and redirecting The Washington Post's editorial focus.
While Amazon won't display tariff costs directly, consumers will still pay them through higher prices. Analysis shows products on Amazon have already seen average price increases of 29%, and major retailers have warned of further price hikes and potential inventory shortages.
Yes. Temu has implemented an "import charge" displayed at checkout that shows the approximate 145% tariff impact on items from China.
This article was co-written by our Tech Economy Analyst Raj Patel and Economic Policy Analyst Jonathan Morris.
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