‘Hostile and political act’: WH blasts Amazon over plan to display tariff costs for consumers

Summary

Amazon's decision to show tariff impacts on product prices has sparked controversy. The White House described this move as a hostile political act, considering it an attack on Trump's tariff policies. As prices rise due to tariffs, Amazon aims to offer transparency to consumers, potentially prompting other retailers like Walmart and Costco to follow suit. This shift has deep political and economic implications, as businesses fear governmental retaliation. As the Trump administration struggles with low approval ratings, it's attempting to regain control over a worrisome economic narrative.

Highlights

• Amazon's transparency move shakes up the retail world and political landscape 🌐.
• White House condemns Amazon's tariff display plan as a hostile political act 🏛️.
• Potential ripple effect as other retailers may disclose tariff impacts 🏷️.
• Administration tries to shift narrative amidst low approval ratings and economic concerns 📊.
• Experts question the economic communication strategy of the Trump administration 🤔.

Key Takeaways

• Amazon plans to display tariff impacts on prices, sparking a political debate between the White House and retailers 🤯.
• The transparency move by Amazon is seen as a potential threat to Trump's tariff policies 💼.
• Other major retailers might follow Amazon's lead, but fear White House retaliation 😨.
• The White House struggles with low approval ratings while trying to divert focus with immigration policies 📉.
• The economic uncertainties surrounding trade negotiations add volatility to markets 📉.

Overview

Amazon's bold move to display the impact of tariffs on product prices has stirred a political and economic storm. The White House called this transparency push a hostile act against President Trump, accusing Amazon owner Jeff Bezos of using the platform for political purposes. Despite the political backlash, Amazon is positioning itself as a champion of consumer transparency in the era of rising tariffs.

Political tensions rise as the Trump administration labels Amazon's plan as a political maneuver. This comes amid Amazon's new strategy to clarify how tariffs exacerbate price hikes for consumers. With growing consumer frustrations over increased prices, retailers are caught between transparency demands and fear of political retaliation.

As the Trump administration grapples with low approval ratings and economic critiques, it resorts to strategies like immigration attention-shifts. In this tumultuous backdrop, Amazon’s move reflects broader economic narratives that are uncertain and contentious, leaving consumers and markets in a volatile state. The balance between transparency and political maneuvering remains precarious.

Chapters

• 00:00 - 02:00: Amazon's Display of Tariff Costs The chapter titled 'Amazon's Display of Tariff Costs' discusses the new initiative by Amazon to show customers how much of an item's cost is derived from tariffs. This change comes amidst reports of prices increasing in certain sectors and stores. The chapter highlights that when customers go to Amazon's website or app to make a purchase, they will now be able to see the tariff cost component of the price, providing transparency on how tariffs impact product pricing.
• 02:00 - 03:00: White House Response The chapter titled 'White House Response' discusses the reaction of the White House to the tariffs imposed by President Trump, which were deemed by the press secretary as a hostile and political act by Amazon. It mentions that Jeff Bezos, the owner of Amazon and the Washington Post, has had a favorable relationship with Trump during the initial 100 days of his presidency. The chapter anticipates hearing from President Trump at a rally in Michigan to mark his 100th day in office.
• 03:00 - 05:00: Economic Implications of Tariff Display The chapter discusses the economic implications of tariffs, particularly focusing on how retail giants like Walmart and Costco might react. It suggests that these companies may start explaining to their customers why prices are increasing if tariffs lead to such price hikes. This move could be viewed negatively by some in the Trump administration, potentially seeing it as a hostile act. The discourse revolves around the tension between displaying price changes transparently and maintaining favorable governmental relationships.
• 05:00 - 07:00: Immigration and Tariffs: Political Strategies The chapter titled 'Immigration and Tariffs: Political Strategies' discusses the perspectives of conservative economists and the Wall Street Journal editorial page, who argue that tariffs are essentially a hidden tax on consumers. It highlights the potential impact on consumer prices, especially if major retailers like Amazon and Walmart decide to make the price increases due to tariffs more transparent. The chapter also briefly mentions a political aspect, hinting at a discussion about the politics of tariffs.
• 07:00 - 08:00: Resetting the Narrative The chapter 'Resetting the Narrative' discusses the portrayal of illegal immigrants in media and public discourse, particularly focusing on those who have committed violent crimes. It describes the display of wanted posters for these individuals at the White House, suggesting an attempt to influence public perception. This action is framed within a context of political strategy, possibly as a response to low poll numbers, indicating a concerted effort by the administration to communicate its stance on immigration to the American public.
• 08:00 - 10:00: Treasury Secretary's Attempt to Calm Markets In this chapter, the focus is on the Treasury Secretary's efforts to reassure the markets, consumers, and voters amidst the backdrop of ongoing tariff negotiations. Building on previous attempts to highlight action on illegal immigration, this move serves as part of a broader strategy to instill confidence in economic policies, emphasizing a positive outlook for future negotiations.
• 10:00 - 12:00: Market Volatility and Amazon's Potential Impact The chapter discusses the current market volatility and how it might be affected by recent actions such as tariffs. It notes that there is some unease about how tariffs have been implemented in the past 100 days, with a strategy emerging to reset this narrative. Initially, the White House appeared positive about the first few months, but recent developments like Signalgate and economic repercussions from tariffs have disrupted this optimism. Economists are being engaged to refocus on the positive aspects of the tariffs.
• 12:00 - 15:00: Transparency in Retail Pricing The chapter discusses the topic of transparency in retail pricing, highlighting current political activities such as immigration and deportation efforts led by Tom Holman. As part of the 100 days marking, the administration aims to shift public perception amid challenging poll numbers, involving appearances by officials like the Treasury Secretary to address concerns and strategies. Despite no panic in the West Wing, there is an undercurrent of unease regarding public opinion trends.
• 15:00 - 18:00: Corporate Concerns Over Transparency The chapter, 'Corporate Concerns Over Transparency,' discusses the strategic measures taken by Trump during his presidency, particularly during challenges or low approval ratings. The focus is on Trump's propensity to pivot conversations towards immigration issues as a strategy to reset public discourse. This is highlighted with historical reference since 2015, emphasizing his instinctual approach to political strategy. Additionally, it is mentioned that with Trump not seeking re-election, he feels less constrained and more liberated in his actions and decisions.
• 18:00 - 19:00: Conclusion In the conclusion chapter, the focus is on managing concerns related to ongoing challenges, such as the persistence of certain issues ('third term trolling'). Acknowledgement is made of current positive standings ('good poll numbers'), yet there is an emphasis on the potential for future progress and successes in the next phase ('next 100 days'). This includes expectations for the completion of significant trade and peace deals, suggesting a hopeful outlook for continued improvement and substantial achievements in the near future.

‘Hostile and political act’: WH blasts Amazon over plan to display tariff costs for consumers Transcription

• 00:00 - 00:30 And we should note also uh Joe, one real takeaway here from this uh briefing was the news that broke just before uh those two took the podium that Amazon was is now going to be displaying how much of an item's cost is derived from tariffs. We are seeing reports already prices are going starting to go up in a certain sectors at certain stores, certain industries. Now, Amazon is going to show you if you go to their website or their app and click and I'm going to buy this, it will show you how much you're paying
• 00:30 - 01:00 because of President Trump's tariffs. The press secretary secretary deemed that a quote hostile and political act by Amazon. Uh we know, of course, that Jeff Bezos, the owner of Amazon, also owns the Washington Post and other interests, has really cozied up to Trump in these first 100 days. We'll see what happens there next. We're going to hear from the president himself later on at this rally in Michigan to mark 100 days of his term. Yeah. I mean, obviously that's just a business, it seems to me,
• 01:00 - 01:30 protecting their relationship with their customers. I suspect you will see Walmart, you will see Costco, you will I mean you'll see other stores uh that are going to be explaining why prices are going up if they do in fact go up because of tariffs. And again, that's again some in the Trump White House may view that as a hostile act. It seems to me it'll be exactly what everybody's
• 01:30 - 02:00 been saying. the Wall Street Journal editorial page and other conservative economists have been saying for years that tariffs are a hidden tax on consumers and so that tax won't be so hidden uh if Amazon, Walmart and other companies decide to show how much those prices are being increased because of tariffs. It is interesting, John, let's talk about the politics of this for a second. Yesterday you were talking about
• 02:00 - 02:30 how there were um um almost like wanted posters of of u illegal immigrants that committed violent crimes that were hung up uh behind uh the standing positions where where a lot of people did their hits at the White House on the fence. uh done obviously uh many well I say obviously many people believe done because of the low poll numbers that came out over the weekend and so the White House trying to show Americans
• 02:30 - 03:00 this is what we're doing on illegal immigration even if you disagree with certain parts of it today seems to be sort of a one-two punch right okay yesterday they did that to underline what they're doing on illegal immigration today they bring out the Treasury secretary to try to explain why uh the tariff negotiations are going to go in a positive direction and to try to not only calm the markets but also calm consumers and calm voters who may be
• 03:00 - 03:30 getting uh well not maybe if you look at the poll numbers getting very squeamish about the way these tariffs have been trotted out over the past 100 days. Yeah, that's clearly the strategy and attempt to sort of reset the narrative here. As we've talked a lot, this is the White House first couple months felt really good and they've been about how things were going. knocked off kilter in the last month because of Signalgate which then had its sequel. Um but then and of course the economic fallout from the tariffs. So they're trying to focus in on what they think are the positives from the tariffs. A lot of economists of
• 03:30 - 04:00 course disagree and immigration yesterday. In fact, not only do they hang up those posters on the White House driveway, but Tom Holman, who's head of the face of the deportation effort, the immigration crackdown, he appeared with press secretary at another 8:30 a.m. briefing. And now this morning, uh, we see the Treasury Secretary do the same. And this is an attempt here as they mark 100 days, uh, Joe, to try to turn the corner a little bit. They, you know, we we talked a few hours back about there's no panic in the West Wing about these poll numbers, but there's not happiness either. Uh, they they see the trends.
• 04:00 - 04:30 They see the the the headlines that say that Trump has a historically low approval rating at the 100 day mark. They're looking to try to reset it. and is so often, we've seen this since 2015 when Trump first took a step onto the presidential stage, his reflexive instinct, anytime he wants to change the conversation, you go to immigration. Yeah. And of course, inside the White House, you're hearing the same things that I'm hearing. Number one, they say he's freed up. He's not running for reelection again, so he doesn't have to
• 04:30 - 05:00 worry about that despite the fact the third term trolling does continue unabated. Uh and then then the second thing they'll say is that you know we've got time. We prefer good poll numbers to bad poll numbers. But we think the next 100 days uh we've had a lot of disruption the first 100 days. We think the second 100 days we're going to see trade deals. We're going to see peace deals. Uh and we're going to be seeing
• 05:00 - 05:30 uh tax deals, reconciliation deals. So, we'll see what happens. Let's bring in right now the co-anchor of CNBC Squawkbox and New York Times columnist Andrew Ross Orcin. Andrew, we've talked about the politics of it. John and I have talked about the politics of why the Treasury Secretary was out there uh with the White House spokesperson. I'm curious uh did you gain anything economically from that? Did you get any answers that might calm the fears of
• 05:30 - 06:00 Wall Street or uh American consumers who obviously if you look at every poll that's out there right now very concerned about the way the White House tariffs are going. I'm afraid to say I didn't u and he has been soothing the markets by by coming out and being public though I don't think as we all saw that there were a lot of answers. In fact, I would imagine that people are frustrated and there's sort of a disconcerting piece about what exactly is happening uh with these negotiations
• 06:00 - 06:30 with China. It doesn't appear that there are talks going on and it it appears that he continues to say that he's not engaged in those talks himself. If there are talks uh going on, it's it's odd that he can't comment specifically uh on these China talks. he seems to know a lot about or be willing to say that he's having talks with all these other countries. Um but again, we have no timeline for where uh this is all going to shake out. And so I think this is going to get pushed out uh and continue
• 06:30 - 07:00 uh to continue to have a sort of a volatile market as a result of it. I do think and I want to just make a point about the Amazon comments because I I I think that's going to be the next big headline of the morning. First of all, I don't think we know yet exactly what this could look like on the website. This was this report uh from Punch Bowl. Uh I'm not suggesting it's wrong. I just think there's a question mark about how it would be how it would manifest itself in a practical way. Uh there is a
• 07:00 - 07:30 distinction though that's important to make between uh what you heard there from the White House as it relates to them saying look uh Amazon didn't do this when Biden had tariffs on and uh Amazon didn't do this during the first uh Trump administration. That is true but for the most part the products that are sold on Amazon were not tariffed and not tariffed at these levels. So when you're talking about tariffs at 145% it's going to change prices materially. The kinds of things that had been tariffed under Biden and Trump prior to
• 07:30 - 08:00 this were, you know, solar panels, EV batteries, semiconductors. These were not products that you and I could go on our Amazon app and buy. So, this is going to be a different experience. Now, yes, this is going to be a billboard though uh for the tariffs. That is there's no question that is what's going to happen. But I wonder whether as a result of these comments this morning, whether Amazon will go through with it and actually whether this will silence all retailers, Walmart and anybody else who was even thinking about indicating
• 08:00 - 08:30 uh what was going on here. Now, I would think as a customer, this would great transparency. You want that. You want to know what's going on, but this may change that. You know, Andrew, um it's one thing if Jeff Bezos is trying to cozy up to Donald Trump for whatever reasons he's trying to cozy up to Donald Trump, but the first group of people he has to cozy up to are his customers. Yes. Same with
• 08:30 - 09:00 Walmart. Same with and and and if customers see items uh going up, you know, 10, 15, 20, 25% and there's no explanation, their anchor is going to be directed at Amazon, at Walmart, at Costco, at Target. You just go down the list. So, I understand the White House has been very effective and in scaring some of these guys. Uh but it's one thing
• 09:00 - 09:30 having political push back. It's quite another having it from the very people who decide whether your business succeeds or fails. I don't disagree with you. I just think that this administration has managed to scare so many businesses uh into silence. We've seen it over and over again. I I actually mentioned it yesterday to somebody. I had a CEO tell me, "I don't want to be harvarded." That was the phrase. I don't want to be harveed. uh which means basically I don't want uh to
• 09:30 - 10:00 have to get in a lawsuit with them and then coming after me in some other way. And I think that that is what worries CEOs today. So do I think that Amazon may look at this and say to themselves, okay, maybe I maybe I'm going to try to get the word out in a different way. I'm not going to poster it on each thing. Maybe. I don't know how this is all going to play out. But I do think that this uh administration has scared these CEOs so you know so much that they are worried about either being regulated in some way that they don't know about. I
• 10:00 - 10:30 mean all of these businesses whether it's Walmart or Amazon or whomever have massive uh relationships or or rely on the government not for funding but for allowing them to do all sorts of things. You know Amazon just put Kyper which are these new satellites into the sky uh in the past 24 hours. That's a very, very big deal. They're going to want to be able to continue to do that. There's all sorts of things like that where they need the permission effectively of the government and if the government tries to block them on anything, the question
• 10:30 - 11:00 is what's the riskreward as it relates to showing these prices. I would think the transparency should win, but uh as you know, I think we've seen that unfortunately in this day and age, transparency is all too often getting lost. Yeah. Uh that was an incredible news conference with just almost zero answers actually to the questions that were asked. Uh CNBC's Andrew Rosorin, thank you very much. Ah,