Seattle-based law firm alleges that world’s largest online retailer passed rising costs from Trump tariff increases directly to consumers and later, after those tariffs were invalidated, allowed the federal government to keep the funds to “curry political favor”

A consumer-protection lawsuit from Seattle-based law firm Hagens Berman accuses Amazon.com of collecting funds from millions of its customers in response to since invalidated tariffs, passing the buck on rising costs through higher prices.

The lawsuit was filed in the U.S. District Court for the Western District of Washington on May 15, 2026, and states that in February 2025 when the Trump administration began imposing tariffs on imported goods under the International Emergency Economic Powers Act (IEEPA) Amazon began increasing the price of imported products it sold directly to consumers.

When the Supreme Court later invalidated the IEEPA tariffs, Amazon chose not to seek refunds from the federal government. This was a deliberate choice by Amazon that was met by enthusiasm by President Donald Trump, according to the lawsuit.

“The problem is that the funds Amazon is using to stay in the President’s good graces do not belong to Amazon,” the lawsuit states. “These funds were wrongfully taken from consumers to cover IEEPA Tariffs that have since been invalidated.”

If you bought an imported product via Amazon between February 2025 and February 2026, you may have overpaid due to the unlawful collection of tariff fees.

How Trump’s Tariffs Rippled Through Retail

On Feb. 4, 2025, the Trump Administration began imposing a 10% tariff on Chinese imports under the IEEPA which, at its peak, caused average U.S. tariffs on Chinese imports to skyrocket to 127.2%, according to the lawsuit. These IEEPA tariffs continued until Feb. 20, 2026, when the U.S. Supreme Court declared them invalid.

As retailers reacted to increasing tariffs, Amazon CEO Andy Jassy anticipated seeing “tariffs creep into some of the prices,” according to the lawsuit. During this period, Amazon increased the price of 1,200 low-cost goods by 5.2%, while Walmart lowered prices on those same items sold at that time by nearly 2%.

In late April 2025, Amazon planned to start displaying how much of a product’s cost came from the IEEPA tariffs. According to the lawsuit, “Amazon’s plan was poorly received by the Trump Administration. White House press secretary Karoline Leavitt called the move ‘a hostile and political act.’ On April 29, 2025, President Trump contacted Amazon founder Jeff Bezos to discuss the issue. After the call between Mr. Trump and Mr. Bezos, Amazon abandoned the plan.”

“We believe that when the Trump administration voiced its admonishment, Amazon caved into its desire for favorable treatment,” said Hagens Berman managing partner, Steve Berman. “It appears that consumers were left holding the bag in Amazon’s poli-financial calculations. In violation of the law, consumers were forced to pay unlawfully increased prices, inflated by tariffs.”

Proper Tariff Payback

Tariffs are paid by the importer of record, the party legally responsible for the goods at the time they enter the United States. The importer of record is the only party entitled to recover the cost of the IEEPA tariffs from the federal government. Following the Supreme Court’s decision regarding the tariffs, nearly 2,000 importers began attempting to recover tariff refunds from the government.

On its website, Amazon states clearly that it is not the importer of record for any third-party sellers using Fulfillment by Amazon and for its Seller Fulfilled Prime orders, meaning Amazon did not pay tariffs for its third-party sellers. For Amazon’s directly sold products, for which it does claim to be importer of record, the lawsuit estimates that Amazon is likely entitled to hundreds of millions of dollars in refunds. According to attorneys, these funds belong to consumers.

The lawsuit brings claims of unjust enrichment and violation of state consumer-protection laws and seeks to recover losses faced by Amazon customers.

Read more about the lawsuit against Amazon regarding tariff costs pushed onto consumers.

About Hagens Berman

Hagens Berman is a global plaintiffs’ rights complex litigation law firm with a tenacious drive for achieving real results for those harmed by corporate negligence and fraud. Since its founding in 1993, the firm’s determination has earned it numerous national accolades, awards and titles of “Most Feared Plaintiff’s Firm,” MVPs and Trailblazers of class-action law. More about the law firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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“We believe that when the Trump administration voiced its admonishment, Amazon caved into its desire for favorable treatment,” said Hagens Berman managing partner, Steve Berman.