Amazon to display tariff costs for consumers
Feasibility of Calculating Tariffs
- Many note it’s straightforward only for simple flows (factory abroad → importer → Amazon warehouse).
- For multi-step supply chains (raw materials and components tariffed at earlier stages, US assembly, multiple intermediaries), commenters argue Amazon cannot know true embedded tariffs.
- Some suggest crude heuristics (e.g., use pre-tariff price as baseline), but others say that’s highly misleading given other drivers of price changes (seasonality, FX, commodities, logistics, general inflation).
Impact on Pricing, Margins, and Incentives
- Several point out that showing tariff amounts could reveal importers’ cost basis and gross margins via known tariff rates.
- That creates incentives to show only approximate “tariff” surcharges, potentially padded like “shipping and handling” or telecom “regulatory fees.”
- Others argue any such padding would rapidly erode trust if arbitrary fees appear inconsistently across similar products.
Political and Messaging Dimension
- Many see the move (or even the consideration of it) as political messaging: tying higher prices directly to Trump’s tariff policy.
- Others counter that itemizing government-imposed charges is normal (like sales tax) and calling it “political” is itself partisan.
- Later reports in the thread say the White House labeled it a “hostile and political act,” Trump personally complained, and Amazon then publicly narrowed/denied the plan, which some read as successful intimidation.
Consumer Experience, Transparency, and Hidden Fees
- Some welcome the transparency, comparing it to VAT breakdowns abroad, and think it would help consumers see tariffs are a tax on them, not on foreign governments.
- Others fear a slippery slope: tariffs as a separate checkout line item could normalize hidden fees and fake base prices, like restaurant “service fees” and ticketing surcharges, instead of all‑in pricing.
Tariffs, Inflation, and Economic Debates
- Extended back-and-forth over whether recent price spikes can be primarily attributed to tariffs versus other factors (oil, FX, uncertainty, corporate profit-taking).
- Several describe tariffs as a regressive tax and “reverse Robin Hood,” citing long-standing arguments that they enrich capital owners and hurt poorer consumers.
- Others defend tariffs as necessary to counter “dumping” and offshoring, though many doubt they will actually bring back high-quality US manufacturing.
Amazon, Chinese Sellers, and Quality Concerns
- Commenters note a large share of Amazon third‑party sellers are Chinese, some allegedly gaming customs declarations; this complicates accurate tariff accounting.
- Some hope visible tariffs would steer buyers toward non‑Chinese or “Made in USA” alternatives, though others say true origin and tariff‑free status are nearly impossible to determine for complex products.
Meta: Reliability of the Original Report
- Later in the thread, links are shared indicating Amazon said the idea was only briefly considered for a niche “ultra low cost” store, never for the main site, and that nothing has been implemented.
- Some conclude the initial report overstated the plan; others focus on how quickly the idea vanished after White House criticism.