WASHINGTON (Reuters) -Amazon said on Tuesday its low-cost Haul unit had considered listing import charges for goods in light of new U.S. tariffs but denied looking at such a plan for its main website, after the White House accused it of a hostile political act.
The Seattle retailer spent a chaotic morning denying a report from Punchbowl News that it planned to display prices showing tariffs’ impact on Amazon.com. It acknowledged it had considered it for certain inexpensive China-made products on Haul but then rejected the idea.
The confusion initially prompted a 2% drop in Amazon shares after White House press secretary Karoline Leavitt called the reported pricing plan “a hostile and political act by Amazon.” Amazon <AMZN.O> denied the initial story .
The company said its smaller Haul division, which competes for low-cost buyers with Temu and Shein, had mulled displaying import levies. “The team that runs our ultra low cost Amazon Haul store considered the idea of listing import charges on certain products. This was never approved and (is) not going to happen,” a company spokesperson said, adding that “teams discuss ideas all the time.”
Amazon shares settled and were down less than 1% in afternoon trading.
President Donald Trump has imposed a tsunami of tariffs on U.S. trading partners, including China which has seen tariff costs rise by 145% since Trump took office, sending many corporations scrambling. Trump called Amazon founder and executive chairman Jeff Bezos to complain about the Punchbowl News report, a White House official said.
Automakers and others have said new tariffs could drastically hike the cost of consumer goods.
Amazon’s Haul site, which debuted in November, is particularly susceptible to tariffs because it is dependent on goods shipped directly from China, similar to popular low-cost site Temu. In exchange for lower prices, customers face longer shipping times.
Trump this month signed an executive order that closes a trade loophole known as “de minimis” that has allowed low-value packages from China and Hong Kong to enter the United States free of duties. The order takes effect on May 2.
U.S. Representative Marjorie Taylor Greene, a Trump ally, jumped into the fray. “Ahhh come on Amazon!!,” she posted on X. “I was getting so excited about the Amazon tariff tracker so I could avoid buying anything from China!!”
Reuters reported on Monday that some third-party merchants who previously sold China-made goods during Amazon’s premier July Prime Day shopping event are sitting it out this year or reducing the amount of discounted merchandise they offer.
The company on Tuesday announced the return of Prime Day this year, but did not provide specific dates, a departure from prior announcements.
Trump was a frequent critic of Bezos during the Republican’s first term, particularly over what he said was unfair coverage by The Washington Post, which Bezos owns.
Bezos and Amazon have appeared to try to reconcile with Trump including by buying a documentary about first lady Melania Trump for $40 million, contributing to the president’s inaugural fund and showing episodes of Trump’s reality show The Apprentice on Prime Video.
The strategy to remain in the White House’s good graces seemed to have been working. In a March interview with The Atlantic that was published Friday, Trump said of Bezos, “He’s 100 percent. He’s been great.”
But Leavitt on Tuesday cited a 2021 report by Reuters that the tech company had partnered with a “Chinese propaganda arm.”
“So, this is another reason why Americans should buy American,” Leavitt said, underscoring the Trump administration’s efforts to shore up critical supply chains and boost domestic manufacturing.
Amazon in 2021 said it “complies with all applicable laws and regulations, wherever we operate, and China is no exception.”
The White House tweeted a link to the Reuters report earlier Tuesday. The White House did not immediately comment after Amazon denied the tariffs report.
(Reporting by Andrea Shalal, Steve Holland and David Shepardson in Washington, Greg Bensinger in San Francisco and Sophia Deborah in Bengaluru; Editing by Chizu Nomiyama and Alistair Bell)
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