Amazon has rejected a recent Wall Street Journal (WSJ) report that stated prices of its low-cost essentials increased by an average of 5% after tariff plans from the Trump administration.

The WSJ’s analysis examined 2,500 items, including cough drops and antibacterial wipes, from January 20 to July 1, 2025.

In a blog post, Amazon labeled the WSJ report as “fundamentally flawed,” citing inaccuracies in the data.

The company claimed that price increases for items like Dove deodorant and Yogi Tea bags resulted from the end of promotional discounts, not from tariffs or inflation.

Amazon’s dynamic pricing model can lead to price fluctuations, which the WSJ considered in its sampling methodology.

However, Amazon criticized the report for “cherry-picking” examples and not adequately considering other influencing factors.

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🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Retailers show defensive sensitivity when confronted with tariff-driven price tracking

Amazon’s lengthy blog post response to the WSJ analysis reveals how major retailers are becoming increasingly defensive about public scrutiny of their pricing during the current tariff period.

The company’s detailed rebuttal, claiming WSJ “cherry-picked” data and ignored promotional periods, suggests significant concern about being perceived as profiteering from tariffs rather than simply passing through unavoidable costs.

This defensive posture is evident when viewed alongside data from other major retailers. CNBC’s tracking of Walmart prices found increases as high as 51% on specific items, with a 12-piece pots and pans set jumping from $99 to $1491.

The trend extends to companies like Mattel and Procter & Gamble, which have also announced price hikes due to tariffs2.

Amazon’s sensitivity likely stems from the political risk of appearing to capitalize on tariff policies, especially given President Trump’s public criticism of Walmart for not absorbing tariff costs3.

2️⃣ Current tariff levels represent the most significant trade policy shift in over a century

The scale of current tariff implementation far exceeds typical trade policy adjustments, with the effective U.S. tariff rate reaching 22.5%, the highest level since 19094.

This represents a major shift in trade policy that goes beyond normal economic fluctuations, helping explain why retailers like Amazon are experiencing such intense scrutiny over their pricing responses.

The economic impact is already measurable and significant. Federal Reserve analysis shows that tariffs implemented just in February and March 2025 alone contributed to a 0.3% increase in core goods prices5.

Yale Budget Lab projects these tariffs will cost the average American household $2,100 annually, with the April 2nd tariff announcement expected to raise consumer prices by 1.3%4.

The speed of these effects, with price impacts visible within months of implementation, demonstrates why companies are scrambling to adjust their pricing strategies and communication approaches in real time.

Recent Amazon developments

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