US President Donald Trump has slammed Amazon over a reported plan to display tariff costs on its products, calling the move a “hostile and political act”.
White House press secretary Karoline Leavitt addressed the issue during a daily media briefing, referencing a report by news site Punchbowl that said the online retailer was considering labelling US import tariffs on certain goods.
“I spoke to the president about this story,” Ms Leavitt said. “He said it is a hostile and political act by Amazon. So this is another reason why Americans should buy American.”
Amazon later confirmed the tariff breakdown idea had been considered – but only by a subsidiary – and insisted it would not have appeared on its main website.
“The team that runs our ultra-low-cost Amazon Haul store considered the idea of listing import charges on certain products,” a spokesperson said. “This was never approved and is not going to happen.”
Reports suggest Mr Trump personally called Amazon founder Jeff Bezos to complain.
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Amazon shares dropped two per cent in pre-market trading but recovered following the company’s statement.
Amazon Haul, launched in November, allows US customers to buy ultra-cheap goods directly from Chinese sellers, including $US5 handbags and $US10 sweaters, often with extended delivery times.
The controversy comes just weeks after Mr Trump signed an executive order closing a trade loophole known as “de minimis”, which had allowed low-value packages from China and Hong Kong to enter the US duty-free. The change takes effect on May 2 and could directly impact Amazon Haul’s business model.
The row has further exposed tensions between Mr Trump and Mr Bezos. Despite reportedly donating to and attending the president’s second inauguration in January, the Amazon founder has now found himself at odds with the White House.
US media also reported that Amazon’s streaming division had planned to spend $US40 million on a documentary about First Lady Melania Trump.
The tariff backlash coincides with reports that some third-party merchants are now avoiding importing Chinese goods ahead of mid-year sales, and that major retailers are scaling back discounts due to increased costs.