Chinese Amazon sellers are bracing for price hikes or a full exit from the US market after President Donald Trump announced a steep increase in tariffs on Chinese imports, according to a report from Yahoo! Finance.
The new duties, set to rise to 125% from 104%, are expected to hit Chinese exporters hard, with some already raising US prices by up to 30%.
Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association, warned the tariff shock could overwhelm cost structures and make it “very hard for anyone to survive” in the US.
Of five Amazon sellers interviewed, three plan to raise prices, while two are preparing to leave the market.
Shenzhen alone is home to more than 100,000 Amazon businesses generating $35.3 billion in annual revenue. With the US market now seen as increasingly unviable, sellers are shifting focus to Europe, Canada and Mexico to limit losses and avoid deep cuts to profitability.