Amazon Stock Drops 1% After White House Criticism Over Tariff Labeling

Amazon, the global e-commerce giant, faced a sudden backlash from the White House on April 29, following its announcement to start labeling additional costs on products due to Trump's tariff policies. The White House press secretary, Sarah Sanders, criticized the move as "hostile political behavior."

This development led to a temporary drop in Amazon's stock price, which initially fell by more than 2.5% in pre-market trading. However, the decline narrowed as the market opened, with the stock price eventually stabilizing with a less than 1% drop by the time of reporting.

Amazon's decision to clearly display the proportion of tariffs on product prices aims to show consumers how Trump's tariff policies are driving up prices. However, this move could potentially strain the company's relationship with the Trump administration, as well as its founder, Jeff Bezos.

Amazon is not the only retailer affected by the new tariff policies. Other companies, such as Shein and Temu, have also added significant surcharges to their products in response to the changing tariff landscape. Temu, for instance, has included an "import fee" on its checkout bills, amounting to approximately 145% of the product price for each item.

Some sellers have chosen to withdraw from Amazon's Prime Day global shopping event due to the impact of U.S. tariff policies. Prime Day is one of Amazon's most significant shopping events of the year, second only to Black Friday and Cyber Monday in importance.

The tariff policies on related products have put Amazon in a difficult position during its Prime Day promotional activities. Third-party sellers are the most affected, as they face significant challenges in navigating the current economic climate. Consultants, such as Jon Eldred, who advises around 100 sellers, have reported that nearly all of his clients are scaling back their Prime Day promotions. The current situation is forcing businesses to make tough decisions.