Amazon says it won't show tariff impact on prices. That's actually a good sign.

MW Amazon says it won't show tariff impact on prices. That's actually a good sign.

Andrew Keshner

One professor says Amazon probably won't be hiking prices too much if it's declining to show how much tariffs are impacting costs

Amazon.com Inc. said it would not display how much tariffs will impact prices, shooting down a report that drew immediate scorn from the White House.

"The team that runs our ultra low cost Amazon Haul store considered the idea of listing import charges on certain products," Tim Doyle, an Amazon spokesman, said in a statement. "This was never approved and is not going to happen."

While some consumers might have viewed this sort of disclosure as a measure of transparency, one professor suggested it could be a good sign that Amazon isn't going forward with such a move.

"I think it most likely means that their price increases are going to be much more limited," said Nicholas Economides, a professor at NYU's Leonard N. Stern School of Business. A tariff-related price disclosure would have been cover for Amazon on more sizable hikes, he said.

If you are increasing the price of goods by 10% or more, a tariff label could help you sell that price to the consumer because that kind of increase is too large to be absorbed on the seller's side, Economides said.

Earlier Tuesday, Punchbowl News reported the online-retail behemoth was going to display an item's total price as well as how much of that cost was linked to tariffs.

The White House came out swinging in response to that report. "This is a hostile and political act by Amazon," White House press secretary Karoline Leavitt said at a press briefing.

The display of a tariff-linked cost would have been a highly visible data point that could've stoked the main criticism of President Donald Trump's tariffs - that everyday consumers will be the ones bearing the cost of the levies.

The episode also illustrates the controversy around tariffs and the fine line companies must walk as they balance the concerns of shareholders and consumers against their standing with the administration.

The prospect of tariff-induced price hikes has been a significant drag on consumer mood during Trump's first 100 days, though Republicans have backed the move as a needed way to spur more domestic manufacturing and more jobs.

Almost 90% of people expect tariffs to increase prices on the products they buy, according to a Gallup poll released Monday.

Some of the tariffs are in effect while others are on pause as the administration works out trade deals.

Some tariffs, like a 145% levy on Chinese imports with certain exemptions, have already gone into effect. Others, like so-called reciprocal tariffs against many countries, are paused for now, though those countries are currently subject to a 10% baseline tariff.

Amazon $(AMZN)$ shares are down 0.3% in Tuesday's midday action. The Dow Jones Industrial Average DJIA is up 0.6% and the S&P 500 SPX is up 0.3%.

-Andrew Keshner

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April 29, 2025 12:41 ET (16:41 GMT)

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