Earlier this month, economic effects from the Trump administration's tariffs blitz hadn't yet made their way to Amazon, though that's been changing in recent days as vendors have started to raise their prices, stating that keeping their costs to consumers the same amid the trade war is "unsustainable," per CNBC. Now, the online giant is apparently trying to separate itself somewhat from the rising price tags: A source tells Punchbowl News that Amazon will soon be posting how much the tariffs are adding to each product it sells—meaning next to the total price of the product will be, in black and white, the added fee for consumers to see for themselves.
That news comes at the same time that the Financial Times reports Amazon has been putting the squeeze on suppliers to keep costs stable for consumers, according to a trio of vendor consultants. "Amazon is the 800-pound gorilla in the room," Scott Miller, a consultant and former Amazon vendor manager, tells the outlet. "Brands have grown dependent on the platform and have little choice." In a statement, Amazon notes: "We're working with our broad, varied range of valued selling partners in our store to support them in adapting to the developing environment while maintaining low prices for customers."
Two consulting sources tell the FT that Amazon has nixed a bunch of orders from China and pivoted to scooping up merchandise from suppliers carrying American inventory. Third-party sellers on the site are starting to get spooked by the tariffs upheaval: Reuters reports that some who hawk China-made goods are cutting down on the deals they'd planned to offer for Amazon Prime Day, which takes place in July, or pulling out of Prime Day altogether. "Last year Prime Day was a no-brainer," says Rick Sliter, CEO of a therapeutic-pillow company that last year saw Prime Day sales that exceeded a typical day's sales by seven times. "But if tariffs continue, discounting gets thrown out the window." (More Amazon.com stories.)
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