Amazon’s Chinese Sellers May Raise Prices or Leave Due to Trump’s Tariffs

Amazon sellers based in China may either leave the online marketplace or raise prices. According to a Chinese e-commerce organization, the adverse reaction from vendors is a direct response to President Trump’s tariffs.

On Wednesday, Trump announced a 125% tariff on goods imported from China. The high duty fee is “an unprecedented blow” and will make selling products in the U.S. unprofitable.

“This isn’t just a tax issue, it’s that the entire cost structure gets entirely overwhelmed,” said Wang Xin, the head of the Shenzhen Cross-Border E-Commerce Association, which represents more than 3,000 Amazon sellers, according to Reuters. “It’ll be very hard for anyone to survive in the U.S. market.” 

With increased costs and potential delays at U.S. ports, many sellers will simply find other markets to sell to, added Wang. Rising unemployment among small businesses and manufacturers is also a very real possibility.

Amazon Sellers Increasing Prices Due to Tariffs

To compensate for tariffs, some sellers are hiking prices. Speaking to Reuters, Amazon seller David Fong raised prices by 30% on products he sells in the U.S. He is also reducing inventory and the amount he spends for advertising on Amazon.

“For us and anyone else, you can’t rely on the U.S. market, that’s quite clear,” Fong said. “We have to reduce investment, and put more resources into regions like Europe, Canada, Mexico and the rest of the world.”

Another China-based seller, Brian Miller, also expected sellers to raise prices significantly in the coming months. Miller noted that developing new products doesn’t make sense under the current import conditions.

“I don’t see a scenario, if things don’t change, that serving the U.S. from China is viable any more and manufacturing that serves the U.S. will have to be transferred to other countries like Vietnam, or Mexico,” said Miller.

Supposedly, Amazon also responded to Trump’s tariffs on Chinese goods. According to reports, the online giant abruptly canceled wholesale orders from sellers in Asia.

Half of Amazon’s sellers are based in China, and they produce over $35 billion in revenue. Popular discounters Temu and SHEIN also source a significant amount of goods from China. Statistics provided by China’s State Council estimate that cross-border e-commerce was worth $358 billion last year.