Economist Peter Schiff criticized President Donald Trump on Tuesday for reportedly pressuring Amazon.com Inc. AMZN founder Jeff Bezos to abandon plans that would show consumers the cost of tariffs on product prices.
What Happened: “Apparently, Trump called Bezos personally to ‘convince’ him not to honestly inform consumers about the taxes they’re paying when they buy goods on Amazon,” Schiff wrote on X. “I don’t like this at all. This is the type of stuff you might expect to see in China, our supposed enemy in the trade war.”
Schiff defended Amazon’s reported consideration to display tariff costs, arguing that “consumers have a right to know how much tax they are paying” and questioning the White House’s characterization of such transparency as a “hostile and political act.”
The controversy emerged after reports that Amazon might display tariff costs next to product prices. While Amazon denied plans for its main site, the company acknowledged considering the idea for its Haul website, which sells items under $20.
Why It Matters: Trump, who has imposed tariffs of up to 145% on Chinese imports and a 10% minimum tax on goods from other countries, confirmed the call with Bezos, telling reporters, “Jeff Bezos was very nice. He was terrific. He solved the problem very quickly.”
White House Press Secretary Karoline Leavitt condemned Amazon’s potential move as a “hostile and political act.”
The disagreement unfolds as Amazon navigates challenges from Trump’s tariff policies, which analysts at Goldman Sachs expect could affect 6%-12% of the e-commerce giant’s operating margins in 2025.
Price Action: Amazon stock closed at $187.39 on Tuesday, down 0.17% for the day. In after-hours trading, the stock slipped further to $186.41, a decline of 0.52%. Year to date, Amazon shares have dropped 14.91%, or $32.83, according to data from Benzinga Pro.
Despite demonstrating strong momentum and ranking well on growth metrics, the e-commerce giant faces a negative price trend in the short to long term, according to Benzinga Edge’s Stock Ranking. Sign up to learn more.
Photo Courtesy: Jonah Elkowitz on Shutterstock.com
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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