Chinese Amazon sellers warn of price hikes and market exit amid U.S. tariffs

Shenzhen-based e-commerce companies selling on Amazon are warning of significant disruptions as they face steep tariff increases imposed by the United States. The Shenzhen Cross-Border E-Commerce Association, which represents over 3,000 Amazon sellers, described the latest round of U.S. tariffs as an “unprecedented blow” to Chinese businesses.

Trump recently announced plans to raise tariffs on Chinese imports to 125%, up from the current 104%, intensifying tensions between the world’s two largest economies.

“This isn’t just a tax issue—it’s a complete shake-up of the cost structure,” said Wang Xin, head of the association. “It’ll be very hard for anyone to survive in the U.S. market.”

In response, some Chinese sellers are planning to raise prices for U.S. consumers, while others are seeking new export markets to offset the losses. The association warns that the tariffs could trigger the collapse of more small and medium-sized enterprises and contribute to a rapid rise in unemployment in China.

Despite the pressure, some exporters are continuing to ship goods to the U.S., though the overall outlook remains grim for many in the sector.

Meanhwoile, Olu Sonola, head of U.S. economic research at Fitch Ratings, said that capital and intermediate goods account for about 43% of U.S. imports from China. As a result, there’s a risk that if these goods stop entering the U.S., it could disrupt domestic manufacturing and potentially lead to short-term job losses.

Neither China nor the US will be net winners from this trade war.

This article was written by Eamonn Sheridan at www.forexlive.com.