Amazon Faces Scrutiny Over Hidden Import Charges

Intermediate Level | May 4, 2025

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Controversy Over Amazon hidden import charges

In late April 2025, Amazon was at the center of a growing controversy surrounding hidden import charges, particularly related to its low-cost storefront, Amazon Haul. Launched in November 2024, Amazon Haul offers products—mostly from China—priced under $20 and often under $10. As the U.S. government imposed sweeping tariff changes in April 2025, this budget-friendly platform found itself under intense scrutiny.

President Trump’s administration announced the end of the “de minimis” rule and introduced new tariffs—up to 145% on Chinese goods and a flat import fee of $100 starting May 2 (rising to $200 by June 1). These changes dramatically increased the cost of imported goods. On April 29, Punchbowl News reported that Amazon considered showing these import charges directly on Haul product pages to be more transparent.

Political Pushback

The Trump White House didn’t take the report lightly. Press Secretary Karoline Leavitt called the idea a “hostile and political act” and criticized it for drawing attention to the consumer cost of tariffs. President Trump himself reportedly phoned Jeff Bezos to express his dissatisfaction, insisting that tariffs are paid by foreign sellers—not American buyers.

Amazon quickly clarified the situation. Company spokesperson Tim Doyle said the idea was considered internally for the Amazon Haul site only and had not been approved. “This was never intended for our main site and is not going to happen,” he confirmed. Social media posts and news outlets widely reported Amazon’s swift retreat following White House criticism.

Impact on Consumers and Sellers

The tariff changes and Amazon’s brief consideration of transparency raised consumer concerns. Many buyers were unaware of how the new rules might impact pricing. Some competitors, like Temu and Shein, had already begun listing import fees ranging from 130% to 150%, causing sticker shock. Amazon sellers, too, began raising prices—about 30% increases on nearly 1,000 top products, according to SmartScout data.

Economists warned that tariffs could fuel inflation. The IMF revised its 2025 U.S. growth forecast down from 2.7% to 1.8%. Additionally, inflation was expected to hit 3%—largely due to global trade friction.

A Bigger Picture

This situation highlights a key issue in global e-commerce: pricing transparency. Amazon claims to support a clear shopping experience. However, the backlash and fast retraction show how sensitive companies are to political pressure. Meanwhile, shoppers are left to navigate confusing import fees and rising prices.

Vocabulary

Scrutiny (noun): Close and careful examination.
- Example: Amazon is under scrutiny for its import pricing.
Tariff (noun): A tax on goods coming into a country.
- Example: The U.S. imposed new tariffs on Chinese products.
Transparency (noun): Being open and clear about actions or rules.
- Example: Consumers want more pricing transparency.
Platform (noun): A type of service or website used by many people.
- Example: Amazon Haul is a low-cost shopping platform.
Retraction (noun): The act of pulling back or canceling a plan.
- Example: Amazon issued a quick retraction after criticism.
Loophole (noun): A gap in rules that lets people avoid limits.
- Example: The “de minimis” loophole allowed duty-free shipments.
Inflation (noun): The rise in prices over time.
- Example: New tariffs could increase inflation in 2025.
Watchdog (noun): A group that checks if companies follow rules.
- Example: Consumer watchdogs are calling for more regulation.
Ad valorem (adjective): Based on the value of goods.
- Example: The government proposed a 120% ad valorem tariff.
E-commerce (noun): Buying and selling goods online.
- Example: E-commerce companies are adjusting to new trade rules.

Discussion Questions (About the Article)

What triggered the Amazon import charges controversy?
How did the Trump administration respond to Amazon’s plan?
Why did Amazon Haul consider showing import charges?
How have other retailers like Temu and Shein reacted to the tariffs?
What are the broader economic effects of these trade changes?

Discussion Questions (About the Topic)

Should companies clearly show all import charges to customers?
How do tariffs affect online shopping habits?
What role should the government play in trade pricing transparency?
Would you continue to buy from a platform that hides fees?
How does politics influence big tech company decisions?

Related Idiom

“Caught in the crossfire”
Meaning: Involved in a conflict or situation unintentionally.
Example: Amazon was caught in the crossfire between new tariffs and political pressure.

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📰 This article was inspired by reports from Punchbowl News, CNBC, SmartScout, and White House press briefings.