US Consumers Launch Class Action Against Amazon Over Alleged Tariff Costs
US consumers have filed a proposed class action against Amazon in federal court in Seattle, claiming that the e-commerce giant unlawfully passed on tariff costs totaling hundreds of millions of dollars to customers.
The complaint, filed by two consumers from Maryland and Massachusetts, focuses on purchases made between February 4, 2025, and February 20, 2026. This period coincides with the imposition of tariffs under the International Emergency Economic Powers Act (IEEPA) and the subsequent ruling by the US Supreme Court that President Donald Trump did not have the authority to impose those tariffs.
According to the plaintiffs, Amazon, as the importer of record for goods sold on its platform, passed on the IEEPA tariff costs to consumers by embedding them in product prices rather than absorbing them.
Following the Supreme Court’s ruling, the Court of International Trade confirmed on March 4, 2026, that importers of record have the right to reclaim those duties from the federal government. The lawsuit alleges that Amazon has chosen not to pursue this recovery.
The complaint suggests that Amazon’s decision not to seek refunds is driven by political considerations, citing a reported conversation between President Trump and Amazon founder Jeff Bezos, during which Trump publicly stated that he would “remember” companies that did not seek reimbursements.
Data cited in the lawsuit, including a Wall Street Journal analysis of 2,500 Amazon products, indicates that prices of around 1,200 low-cost items increased by an average of 5.2% between January and July 2025, while Walmart reduced prices on similar products by nearly 2% during the same period.
A separate review of over 1,400 Chinese-made products sold on Amazon showed a median price increase of 2.6% between January and mid-June 2025. The Budget Lab at Yale University estimates that tariffs contributed to approximately 86% of the price rise in imported household goods up to January 2026.
It is estimated that US consumers paid over $231 billion in tariff-related costs from February 2025 to January 2026, averaging around $1,745 per household. US Customs and Border Protection reported total IEEPA duties collected at approximately $166 billion as of March 4, 2026.
The lawsuit, which includes three counts, seeks restitution, a portion of any refunds Amazon recovers, treble damages, interest, legal fees, and injunctive relief. The plaintiffs have requested a jury trial.
Retail Insight Network has reached out to Amazon for comment on the matter. This legal action comes on the heels of separate allegations in California that Amazon colluded with suppliers and rival retailers to inflate prices rather than compete on cost.
The California case alleged that Amazon pressured suppliers to raise prices on competing platforms or withdraw their products altogether. It remains to be seen how Amazon will respond to these legal challenges.
