WSJ bashes Jeff Bezos for backing down to Trump demands
The Wall Street Journal editorial board took Amazon founder Jeff Bezos to task for backing out of a proposal to indicate the price of President Donald Trump’s tariff on each affected Amazon product.
The White House responded harshly to the proposal, declaring the move a "hostile and political act by Amazon" at a televised morning briefing, but Trump late praised Bezos for changing his mind Tuesday
“He solved the problem very quickly and he did the right thing," Trump said. "He's a good guy."
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But the board wants to know why Trump would want to hide the price of his tariffs if he truly intends for them to replace the U.S. income tax.
“Why is he afraid to let Americans see what they’re paying? Instead of owning its policy, the White House has bullied Amazon to keep quiet about what it will cost,” the board wrote.
The public would have valued Amazon’s price transparency, the board argues. “Tariffs are taxes, and it’s helpful to know how policy choices affect final prices. Some shoppers might say the additional cost is worth it to support Mr. Trump’s policy. But there’s no denying that they’re paying, and everyone is better off knowing how much.”
The board went on to explain that ride-sharing platforms understand the dynamic. After each trip, riders get an itemized bill showing what portion of their fare includes tolls, fees and taxes. Hotels also list local taxes with customer bills.
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“Mr. Trump likes to say foreign exporters bear all the costs of tariffs, with none passed on to customers. Economists disagree, as in a 2020 study showing that final consumers bore the burden of Mr. Trump’s first-term tariffs. Like taxes, tariffs add a certain dollar figure to an impacted product’s sticker price, and prices on Amazon, which serves as a clearinghouse for heavily tariffed Chinese item, could rise considerably.
“Voters who pay little attention to the macroeconomy will notice a direct markup on items they buy,” the board says. In fact, “consumers are already feeling the tariff pain, whether or not retailers quantify it on their websites. White House denials won’t change that, but repealing the tariffs would.”
Read the full WSJ editorial post here.
