You need tell requests what encoding to expect:
>>> import requests
>>> r = requests.get(url)
>>> r.encoding = 'UTF-8'
>>> r.json[u'Item'][u'LastName']
u'Traor\xe9'
Otherwise, you'll get this:
>>> r = requests.get(url)
>>> r.json['Item']['LastName']
u'Traor\u0102\u0160'