Warren writes to Amazon CEO about price increases

Warren writes to Amazon CEO about price increases

Senator Warren Demands Clarity from Amazon on Tariff-Linked Price Increases

Senator Elizabeth Warren (D-Mass.), the top Democrat on the Senate Banking Committee, has written to Amazon CEO Andy Jassy criticizing the company's delayed acknowledgment of how President Donald Trump's tariffs have contributed to rising prices. In the letter, obtained by CNBC, Warren highlights Amazon's reversal of a plan to display tariff costs to customers—a move she attributes to pressure from the Trump administration—and demands transparency on the company's pricing strategies amid ongoing inflationary pressures.

Warren's letter follows a February 24 incident in which Trump called Bezos to express frustration over Amazon's initial proposal to show tariff costs next to product prices. Amazon subsequently abandoned the plan, stating it had "solved the problem very quickly" after discussions with the White House. Warren questions whether this interaction involved "promises or favors" from Trump in exchange for Amazon's compliance, raising concerns about potential conflicts of interest.

The senator also challenges Amazon's broader pricing practices, arguing that the company's failure to disclose tariff impacts deprives consumers of critical information about the true costs of Trump's trade policies. According to Warren's letter, "If Amazon had followed through on any plans to provide transparency on tariff costs, it could have provided important information for consumers."

This action is part of a broader Democratic strategy to spotlight affordability challenges as a key issue ahead of the 2026 midterm elections. Warren separately sent a letter to Trump disputing his State of the Union claim that his administration has "ended" the affordability crisis, citing persistent price increases for essentials like food, housing, and healthcare.

Trump has defended his policies, asserting that his tariffs and restrictions on institutional investors buying homes will curb inflation. However, critics argue that tariffs have exacerbated price pressures, particularly in sectors like retail and energy.

Amazon and the White House have not yet responded to requests for comment. The outcome of Warren's inquiries could influence public perception of both corporate accountability and the administration's economic agenda in the lead-up to November's elections.