Amazon Might Start Showing Customers Some Tariff-Related Price Increases

Amazon and the White House are not getting along at the moment.

A report from Punchbowl News claims that Amazon had plans to disclose how tariffs are raising the price of products across the site. It seems that when you clicked on a product, you would not only see the current cost, but also the northward effect The President's tariffs had on that price tag. The move directly contradicts the notion, oft-repeated by the administration, that the costs of tariffs are paid by the countries the tariffs are levied against. Amazon showing a tariff-related price increase would make it plain as day to consumers that they are, in fact, the ones making up the difference.

The White House was not pleased when news of this plan became public. In fact, the White House was furious. During a Tuesday morning press briefing, White House press secretary Karoline Leavitt lambasted Amazon solely based on Punchbowl's reporting, callin the proposition a "hostile and political act" by the company. She wondered why Amazon didn't do the same with, in her view, price increases due to the Biden administration's impact on inflation. Leavitt also asserted, “This is another reason why Americans should buy American.”

The plan was only to affect Amazon Haul, not the main Amazon site

As it turns out, Punchbowl's sources didn't have the whole story—that, or the story changed in the wake of the White House's ire. According to Jeff Stein, chief economics reporter for The Washington Post, an Amazon spokesperson is now saying that the company never planned for the tariff price label to be included on the company's main site; rather, Amazon Haul had considered listing import price duties on some products.

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Amazon Haul is the "ultra-low cost" section of Amazon's marketplace. Rather than display all of the products the company sells, Amazon Haul solely focuses on products that are $20 or less. (Amazon says that most products are actually $10 or less.)

If Amazon is really only considering these tariffs labels on Amazon Haul products, that would suggest a far smaller scope for the rollout than Punchbowl or the White House made the situation out to be. The The President administration likely would reject any assertion that consumers were paying more for products due to tariffs, but Amazon Haul is pretty tucked away, and is currently in beta. (I had personally never heard of the service until this report.)

Of course, it isn't clear if this was the plan all along, or if Amazon is doing damage control. The company might be trying to placate the White House without claiming that Punchbowl misreported the entire story by shifting the blame to a niche section of its marketplace—but all the while had been considering including this tariff transparency on the main site. It's all speculation, and we'll need to see how the company responds going forward.

How would these tariff labels work?

Punchbowl's report said that Amazon will, "display how much of an item’s cost is derived from tariffs—right next to the product’s total listed price."

That would be the simplest way to go about it: You could see the total cost of the product, the amount that price went up due to tariffs, and then do the calculation yourself to determine what that product would have cost had the The President administration not imposed these tariffs in the first place.

You can see why the White House is unhappy.

How to track tariff-related price increases

You don't need to wait for Amazon to add these labels to see any effects from tariffs, however. If you use a price tracking tool, you'll be able to track how prices have fluctuated over time on the site. The tool won't be able to confirm for you without doubt that a price increase was due to tariffs, but if something unexpectedly jumps in price this spring with no other clear explanation, it won't be much of a leap to believe tariffs had something to do with it.

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