An intense confrontation between President Donald Trump and Amazon CEO Jeff Bezos erupted over the retail giant's proposed plan to display tariff costs on product prices.
According to Daily Mail, Trump personally called Bezos to express his anger after Amazon announced it would include the cost of tariffs on the price tags for products, a move the White House condemned as a "hostile and political act" against America.
White House Press Secretary Karoline Leavitt revealed that Trump was particularly incensed by Amazon's decision, questioning why the company didn't take similar actions during the Biden administration's period of high inflation. The confrontation highlighted growing tensions between the administration and one of America's largest retailers.
White House confronts Amazon's pricing strategy
Two senior White House officials disclosed to CNN that Trump's direct phone call to Bezos stemmed from his dissatisfaction with the company's proposal. The administration viewed Amazon's plan as an attempt to politicize consumer prices and undermine Trump's trade policies.
Leavitt accused Amazon of serving as a willing tool of Chinese propaganda, citing a December 2021 news story about the company's partnership with China's propaganda apparatus. She specifically referenced Amazon's creation of a special selling portal that removed ratings and comments for Chinese books receiving low responses.
The Treasury Secretary and White House Press Secretary held a joint briefing to address concerns about the economic impact of the tariffs. They emphasized the administration's commitment to protecting American industries while managing consumer costs.
Economic impact sparks public debate
The Budget Lab at Yale University projected that American households could face additional costs of up to $4,400 annually due to the unprecedented high retaliatory tariffs placed on China. These estimates have raised concerns about the broader economic implications of the trade policies.
Trump's new tariffs specifically target Chinese-born online shopping websites Temu and Shein, eliminating the trade loophole that previously allowed packages under $800 to enter the United States duty-free. This policy change has significant implications for American consumers who frequently shop on these platforms.
White House Press Secretary Karoline Leavitt shared Trump's perspective on the situation:
This is a hostile and political act by Amazon. Why didn't Amazon do this when the Biden administration hiked inflation to the highest level in 40 years? Of course he was p***ed. Why should a multibillion dollar company pass off costs to consumers?
Resolution emerges after high-stakes call
Following their heated conversation, Amazon quickly backtracked on its plans. A company spokesperson told Reuters they had merely explored the idea of listing import charges on certain products but never approved its implementation.
Trump later confirmed to reporters that he and Bezos had reached an understanding. He praised the Amazon CEO's quick response to the situation, describing him as "terrific" and commenting that "he solved the problem very quickly and he did the right thing."
The incident has affected Trump's approval ratings, with the Daily Mail/J.L. Partners poll showing a nine-point drop from 54 percent to 45 percent. This decline reflects growing voter concerns about the economic impact of his trade policies.
Strategic showdown reshapes retail landscape
President Donald Trump's direct confrontation with Amazon CEO Jeff Bezos over the display of tariff costs on product prices marked a significant escalation in tensions between the administration and major retailers. The dispute centered on Amazon's proposed plan to include tariff costs on price tags, which the White House condemned as politically motivated. While the immediate conflict was resolved through direct communication between Trump and Bezos, the incident highlighted broader concerns about the impact of trade policies on American consumers and businesses, particularly as households face potential additional costs of up to $4,400 annually due to tariffs.