Trump vs. Amazon's Brilliant Tariff Idea - WSJ Editorial

President Trump says his tariffs may raise enough revenue to replace the income tax, so 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 spat started Tuesday morning when Punchbowl News reported that Amazon planned to show shoppers how much of their bill is owed to the tariffs. Put a $140 vacuum cleaner in your cart, for example, and a little label might read “Tariff Cost: $55.” The idea is to let shoppers know that Washington, not Amazon, has raised their prices.

Amazon denied approving the plan, saying it was only an idea. But the White House blasted the tariff-cost feature. “This is a hostile and political act by Amazon,” said press secretary Karoline Leavitt, noting that she was speaking for Mr. Trump. She said the company was parroting Chinese propaganda. Later in the day Mr. Trump said he had spoken with Amazon founder Jeff Bezos, who he said “solved the problem very quickly.”

The public could have used Amazon’s price transparency. 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. 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.

Ms. Leavitt accused Amazon of playing politics selectively, asking why the company didn’t propose a similar feature to display the cost of President Biden’s inflation. She’s right that businesses might have protested more about the cost of progressive governance. But the comparison overlooks the unique simplicity of tariff costs. Like taxes, tariffs often add a precise dollar figure to a sticker price. Voters who pay little attention to the macroeconomy will notice a direct markup on items they buy.

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.

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