Amazon faces class action over alleged tariff cost pass-through
Plaintiffs argue Amazon chose not to reclaim hundreds of millions in duties following Supreme Court ruling, citing political pressure from the White House.
US consumers have initiated a proposed class action against Amazon in federal court in Seattle, alleging the e-commerce giant unlawfully passed on tariff costs totalling hundreds of millions of dollars. The complaint, filed by two consumers from Maryland and Massachusetts, covers purchases made between 4 February 2025 and 20 February 2026. Plaintiffs contend that Amazon embedded International Emergency Economic Powers Act (IEEPA) tariff costs into consumer prices rather than absorbing them as the importer of record.
The legal action follows a US Supreme Court ruling that the IEEPA did not grant President Donald Trump the authority to impose the tariffs in question. Subsequently, the Court of International Trade confirmed on 4 March 2026 that the right to reclaim these duties rests solely with importers of record. The lawsuit alleges that Amazon elected not to pursue recovery of these funds, attributing the decision to political considerations. The complaint cites a reported conversation between President Trump and Amazon founder Jeff Bezos, noting the President’s statement that he would “remember” companies that did not seek refunds.
Pricing data referenced in the suit provides context for the allegations. A Wall Street Journal analysis of 2,500 Amazon products indicated that approximately 1,200 low-cost items rose in price by an average of 5.2% between January and July 2025. In contrast, Walmart reduced prices on the same products by nearly 2% over the same period. A separate review of more than 1,400 Chinese-made products sold on Amazon showed a median price rise of 2.6% between January and mid-June 2025.
Broader economic data underscores the scale of the tariff impact. The Budget Lab at Yale University found that tariffs drove approximately 86% of the rise in prices for imported household goods up to January 2026. It is estimated that US consumers paid more than $231 billion in tariff-related costs from February 2025 to January 2026, equating to roughly $1,745 per household. US Customs and Border Protection estimated total IEEPA duties collected at approximately $166 billion as of 4 March 2026.
The three-count lawsuit seeks restitution, a share of any refunds Amazon recovers, treble damages, interest, legal fees, and injunctive relief. This legal challenge emerges a month after the company faced separate allegations in California of colluding with suppliers and rival retailers to push prices higher. That case alleged Amazon pressured suppliers to raise prices on competing platforms or withdraw products entirely. Retail Insight Network has reached out to Amazon for comment.
