Amazon, the largest e-commerce corporation in the United States, scrapped its plan to separately indicate 'tariff expenses' on product prices less than a day after announcing it.
This was a result of strong pushback from the White House and President Donald Trump directly communicating his opposition to Jeff Bezos, the founder of Amazon.
This marks the first instance of a direct clash between a major technology corporation and the Trump administration since the implementation of high tariff policies. Experts interpreted this case as a signal that a conflict between the government and corporations over the burden of tariff policy costs and responsibilities has begun.
The Wall Street Journal (WSJ) reported on the 29th (local time) that "the plan to separate the listing of tariff expenses being reviewed by Amazon's internal 'haul' team was scrapped due to pressure from the White House."
Haul is Amazon's ultra-low-cost brand. All products, including clothing, household items, and electronics, are priced below $20 (about 28,000 won). There are also many products priced at $1. Due to the nature of low-cost products, many are sourced from China.
Amazon was reported to be pursuing a plan to clearly show tariffs imposed on specific products sold in Haul, particularly those manufactured in China, as a separate item on payment pages.
Amazon described this as an effort to enhance 'price transparency.' However, the White House immediately defined it as 'a misleading act to consumers that undermines government policy' and strongly opposed it.
During a White House briefing that day, White House Spokesperson Caroline Levitt unusually criticized it, using the terms 'hostile and political act.' Spokesperson Karine Jean-Pierre also pointed out that 'listing only specific expenses causes confusion.'
As the controversy spread, President Trump also stepped in directly. According to WJJ, he reportedly called Jeff Bezos, the founder of Amazon, to convey serious concerns about the plan.
Later, in an interview with Daily Beast, President Trump acknowledged that he personally intervened at the highest level, stating, 'I had a conversation with Bezos and quickly resolved the issue.'
Amazon also issued an official statement on its website later that day, saying, 'The plan is not a final approved measure and will not be implemented.'
Amazon, the largest e-commerce shopping mall in the United States, has had various conflicts with the administration since the earlier Trump administration.
Since his presidency, Trump has continued to attack the Washington Post (WP), owned by Amazon founder Bezos, accusing it of excessively critical reporting.
According to The New York Times (NYT), the United States Postal Service (USPS) pressured Amazon to raise delivery fees. The U.S. Department of Defense excluded Amazon from a $10 billion cloud contract (JEDI), leading to ongoing friction.
Given this background, experts assessed that Amazon's attempt to 'label tariffs' could be interpreted as an indirect expression of discontent with the high tariff policies pursued by the Trump administration, aiming to shift the burden of rising expenses onto the government.
The Financial Times (FT) analyzed, 'Amazon's attempt represents a refined criticism of the tariff policy by technology corporations.'
The Trump administration has maintained tariffs of up to 145% on Chinese products and about 10% on imports from other countries, effectively building a 'tariff barrier.' For distribution platforms like Amazon, tariff increases create direct cost pressures.
CNBC cited data from market research firm SmartScout indicating that after the tariff increases announced on the 9th, the prices of 930 major products sold by Amazon surged by an average of 29%.
In particular, low-cost products imported from China, including clothing, electronics, and toys, suffered significant blows to their price competitiveness.
Andy Jassy, CEO of Amazon, stated in a recent CNBC interview, 'While we try to minimize the burden on consumer prices, it is unavoidable that some sellers on the Amazon platform directly pass on the increase in tariff expenses to their sale prices,' acknowledging the implications of the tariff policy.
Although Amazon has withdrawn its plans, the reality of tariff burdens remains. Experts predict that Amazon will seek alternative ways to respond to cost pressures instead of labeling tariffs.
Bloomberg reported that Amazon recently demanded 'double-digit' price reductions from some Chinese suppliers and is seeking alternative supply lines in Vietnam and Mexico, indicating an intention to restructure its supply chain to circumvent tariff barriers.
Bloomberg quoted an expert saying, 'They may adjust their consumer communication strategy to indirectly explain the tariff impact in product descriptions or their own blog, highlighting rationality.'
David Dollar, a senior researcher at the Brookings Institution, commented, 'Changing pricing methods can be interpreted as more than just providing information, but also as a political message,' assessing that this Amazon incident showcases the specific ways corporations can respond to high tariff policies and their limitations.