For the last week, there has been a hue and cry over the rumour about Amazon listing tariff charges on imported goods. It was reported last Tuesday that Amazon Haul is imposing tariffs to compete with e-commerce services to overcome Trump’s Liberation Day tariffs. These charges could have increased the cost of commodities for consumers and third-party sellers who heavily rely on Amazon products.

Trump-Bezos Phone Call 

As this news spread over channels and social media, President Trump called Jeff Bezos for confirmation and reversal of the initiative. The e-commerce giant denied the imposition of such tariffs on imported goods. Meanwhile, the spokesperson of Amazon stated 

“The team that runs our ultra low cost Amazon Haul store considered the idea of listing import charges on certain products. This was never approved and is not going to happen.”

This announcement cleared the ambiguity and tension created by the rumour that Amazon is channelling the tariffs to consumers directly. 

On Friday,  Trump made a bold statement about his phone call to Bezos. In an interview with NBC, he stated 

“We have a relationship. I asked him about [the tariff charge language Amazon considered including in listings]. He said, ‘Well, I don’t want to do that,’ and he took it off immediately.”

What if Amazon Imposes Tariff Charges?

Although Trump has cleared the air by stating that Amazon is not imposing tariff charges on imported goods, and Amazon also announced that it was never a plan, the temporary commotion over this news led consumers to speculate about the possibilities if this had happened. 

  • Amazon holds the largest share of US retailers, with about 37.6 percent of the market by 2023. If imported charges are imposed on goods, it will increase the commodity prices, directly impacting consumers’ purchasing power
  • It will create a big dent in third-party sellers who heavily rely on Amazon products to run their business. Increasing prices will reduce the profit margin and sales. 

Although Trump is sticking to his tariffs and envisions that this initiative will bring investors and manufacturers to the US temporarily, his initiative has scared off big businesses that may have a long-term impact on the US economy.