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As President Donald Trump’s trade war with China continues to cast strong uncertainty over the U.S. economy, many people are asking one question: How will this affect me?
For just about everyone, the answer can be boiled down to two words: higher prices. With the U.S. and China locked in a vicious tit-for-tat cycle of reciprocal tariffs, the cost of many products is expected to rise, from groceries to consumer electronics.
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Anytime prices start rising, consumers will inevitably look to Amazon (AMZN) , the industry leader, from which many people do the bulk of their shopping. And since the tech conglomerate receives a significant portion of its inventory from Chinese vendors, concerns have been rising that Amazon will raise its prices.
Today, Amazon reportedly announced a bold strategy to deal with tariffs, only to revise it after the White House responded with anger.
Amazon’s major tariff decision likely isn’t what it seems
Before markets opened this morning, a story broke from Punchbowl News that caught the attention of many people. In an edition of its Punchbowl AM newsletter, the outlet reported that Amazon had a bold new strategy to show its consumers exactly who would be paying the cost of Trump’s tariffs.
Related: Analyst raises eyebrows with Amazon stock price target ahead of earnings
While not a complete article, the write-up in the newsletter referenced a source with knowledge of the matter who claimed that in the near future, Amazon would start showing the cost imposed on each product by tariffs.
“Amazon doesn’t want to shoulder the blame for the cost of President Donald Trump’s trade war,” the newsletter states. “So the e-commerce giant will soon show how much Trump’s tariffs are adding to the price of each product, according to a person familiar with the plan.”
The outlet provided more context, adding that Amazon’s plan included displaying “how much of an item’s cost is derived from tariffs” directly next to the listed price. Such a measure would make it undeniable that tariffs impose a clear cost on consumers, despite Trump’s claims to the contrary.
Since the story broke, though, things have continued developing. White House Press Secretary Karoline Leavitt quickly responded to the news, describing it as a hostile act and framing it as being politically motivated, raising the question of why Amazon would do such a thing.
In addition, Leavitt attempted to frame Amazon as having links to China’s communist regime, holding up an article from Reuters reporting on the company’s publishing a collection of work from Chinese President Xi Jinping. She describes the article as “recent,” despite the fact that its publication date is December 17, 2021.