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Amazon plans to show customers exactly how much Trump's tariffs inflate their shopping bills. The move sparked immediate backlash from the White House, marking a dramatic shift in the previously warming relationship between Trump and Amazon founder Jeff Bezos.
Press Secretary Karoline Leavitt blasted the plan as "hostile and political." She questioned why Amazon hadn't highlighted costs during Biden's term, when inflation hit record highs.
The move marks a sharp turn in Amazon's relationship with Trump. Just months ago, Bezos was praising Trump's "calmer" demeanor and donating $1 million to his inaugural fund. Now they're playing economic show-and-tell with his tariff policy.
Amazon isn't alone in this price transparency push. Volkswagen now adds "import fee" labels to cars affected by tariffs. Chinese retailers Shein and Temu display surcharges reaching 145% at checkout.
Behind the scenes, Amazon scrambles to protect its profits. The company demands steep discounts from suppliers and reworks deals to offset tariff costs. Goldman Sachs predicts the trade war could slash Amazon's operating profits by $5-10 billion this year.
The timing stings for Trump, who's celebrating his first 100 days back in office. Just months ago, Bezos praised Trump's "calmer" demeanor and donated $1 million to his inaugural fund. That goodwill evaporated faster than Prime delivery.
Amazon's suppliers feel the squeeze. The company demands price cuts up to 10% from sellers, hitting Chinese suppliers hardest.
The drama affects this summer's Prime Day sales. Analysts expect smaller discounts as vendors struggle to absorb tariff costs. Amazon's stock dropped 2% on the news, with shares already down 14.8% this year.
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CNBC: White House blasts Amazon over tariff cost report: ‘Hostile and political act’
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