In a truly bizarre press briefing this morning, the Administration’s press secretary Karoline Leavitt stated that a reported measure by Amazon to start displaying the cost of tariffs next to the total price of products on the site was a “hostile and political act.”
Really?
Showing consumers the actual cost of the goods they purchase is ‘hostile’?
One would think an informed consumer is an empowered consumer.
Perhaps the administration is upset that the reported move by the online retailer will make it abundantly clear to the American consumer that the Administration’s tariffs only increase goods inflation.
Ultimately, Trump’s tariffs are hurting the lowest-income families in America the most.
While Amazon is not without its own myriad of questionable business practices – actually informing the consumer of what the actual cost of a good is – including government taxes (tariffs are taxes) – is not a bad thing.
Leavitt continued in her unintelligent way to fall back on the old base-baiting quip of the previous Administration, “Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?” she asked.
Umm, maybe because Biden didn’t institute a 145% tariff on goods from China.
What exactly did she think Amazon would be posting? Most of the inflation during the Biden Administration was pandemic-related global supply chain issues – not chaotic government policy.
She further added, “This is another reason why Americans should buy American.”
The reality is that many Americans cannot afford to buy US goods, which often are far more expensive than their foreign alternatives.
America has a trade deficit because of consumer demand.
Guided by a historically strong US dollar – the world’s reserve currency – which enables the US consumer to spend at an advantage over their global neighbors, the US economy is essentially consumption-driven.
Americans, particularly those of lower and middle incomes, want inexpensive goods – including food – to support a better life for their families.
This results in US consumers buying cheap foreign goods – mainly from China – which in turn sends US dollars to China, who then turns around and buys US Bonds – which ultimately spurs lower interest rates and funds the US Government and its ever-ballooning debt.
An ever-cyclical exchange that benefits both countries.
The reality is that if Amazon does proceed with this move, the American consumer will be better informed.
Trump’s Administration will be hard-pressed to spin the impact of tariffs in a positive light when consumers see the real effects of chaotic tariffs on their own household’s bottom line.