The major American companies that supported Donald Trump, sometimes at the cost of embarrassing contortions, are hardly rewarded. Antitrust lawsuits continue with zeal, sometimes with the threat of dismantling, as with Google. And the incredible episode of customs duties confirms that Donald Trump is not embarrassed by this support.
An inevitable price increase
While the American president has softened his stance by deciding to "pause" customs duties, products imported from China remain subject to tariffs of 145% when entering the United States — with the exception of computers and smartphones, although this will not last.
At some point, current stocks will be depleted and Chinese products will have to be imported again. And resellers will either have to absorb the price increase by cutting their margins (but what company can boast a 145% margin?), or pass the bill on to American consumers. However, there is no standardized way for the latter to know precisely the additional cost related to to "tariffs."
Amazon is reportedly working on a system that displays a product's price details, the publication Punchbowl News reported this morning, without specifying the form of this label or how the "Trump tax" would be calculated. Even though it was still a rumor, it had the effect of a bomb in Washington. White House spokeswoman Karoline Leavitt didn't mince her words.
Asked about the issue during a press briefing, she asserted that it was a "hostile and political act by Amazon." Before shifting the blame (as is often the case with the Trump administration) to the current president's predecessor: "Why didn't Amazon do this when the Biden administration caused inflation to its highest level in 40 years?" Except that at the time, it was forced inflation, created by external constraints; here, the price increase is entirely Donald Trump's doing...
In any case, Amazon quickly insisted on clarify the situation with CNBC. The e-commerce giant had indeed considered displaying customs fees on certain products from Amazon Haul, the "low-budget" store designed to compete with Shein and Temu. "This was never considered for Amazon's main site, and nothing has been implemented on any of Amazon's platforms," a spokesperson said.
A storm in a teacup, then. But the question of raising prices will become increasingly pressing as the as tariffs will weigh on importers.
Source: CNBC
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