Amazon stocks tank after the White House accuses the company of a “hostile and political act”

Today, Amazon was criticized by the White House for planning to put the price of President Trump’s tariffs next to the total price of items on its website. This could show that American consumers are affected most by Trump tariffs, not China.

White House press secretary Karoline Leavitt told reporters, “Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?” 

According to analysts, more than 70% of the goods sold on Amazon by wholesalers and stores come from China, though it’s hard to say. Therefore, due to higher import costs, Amazon sellers are raising the prices of a wide range of popular items, such as diaper bags, fridge magnets, charm bracelets, and more. 

SmartScout, an e-commerce software company, looked at 930 Amazon goods whose prices have gone up since April 9. The average price increase was 29%, and the items affected were toys, clothes, jewelry, household items, office supplies, and electronics.

White House’s political double standards towards Amazon

In the past, Bezos and Trump’s relationship was sour. In December, he was optimistic about the Republican’s second term, saying that he thinks Trump has become calmer and more sure of himself. Amazon even gave $1 million to Trump’s inauguration fund in the same month.

Bezos told the Washington Post, which he owns that its opinion section could only print pieces that defended “personal liberties and free markets.”

However, it doesn’t seem that way anymore. When asked whether Bezos is still a Trump supporter, Leavitt said, “Look, I will not speak to the president’s relationships with Jeff Bezos, but I will tell you that this is certainly a hostile and political action by Amazon.” Her response could signal an emerging rift between Trump and Bezos.

Trump has not favored any of his billionaire friends. In fact, most of them have lost billions of money in his tariff war. This includes Elon Musk and other tech giants. 

Amazon isn’t the first store to draw attention to how new taxes are affecting its prices. Shein and Temu, two huge fast fashion brands based in China, have both recently added huge fees. A new line at checkout on Temu’s website shows an “import charge” that adds about 145% to each item.

Amazon’s stock price has dropped 15% so far this year

Shares of the online retail giant dropped more than 2% in premarket trading following the remarks. The trade war with China has hurt sellers on Amazon’s third-party platform, where about 60% of the company’s online sales happen.

BREAKING: The White House has accused Amazon, $AMZN, of being partnered with “a Chinese propaganda arm.” https://t.co/FvrpVOs6f4

— The Kobeissi Letter (@KobeissiLetter) April 29, 2025

Many traders are based in China or depend on the world’s second-largest economy to get their goods and put them together. Sellers now have to decide whether to raise prices or pay the extra costs of Trump’s new taxes. 

Many sellers risk quitting their business because their profit margins are so small. For the past few years, they’ve also had to deal with rising costs on Amazon due to storage, delivery, shipping, and advertising fees and price pressure from more sellers. The tariff problem has just added more pressure.

Amazon’s stock price has dropped 15% so far this year, following the rest of the market down. Next week, the company will report its earnings for the first quarter. Depending on whether the report has good or bad news. The stock will either go up or down.

Also, Jim Cramer has commented on the issue saying, “Amazon NOT putting tariff prices on goods. False story.. wow , president ran with it.” The market prophet pointed out that Trump panicked at everything that could affect the US markets. It seems like the US is losing.

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