Chinese businesses selling on Amazon are bracing for a major shift as President Donald Trump’s announcement to raise tariffs on Chinese imports from 104% to 125% threatens their viability in the U.S. market. The move, described by industry insiders as unprecedented, is already forcing sellers to consider hiking prices or exiting the American market altogether.
Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association which represents over 3,000 Amazon sellers warned that the escalating tariffs could cripple cost structures and logistics operations. “This isn’t just a tax issue,” Wang said. “The entire cost structure gets entirely overwhelmed… It’ll be very hard for anyone to survive in the U.S. market.”
China accounts for nearly half of all Amazon sellers globally, with more than 100,000 Amazon-based businesses operating in Shenzhen alone. According to e-commerce analytics firm SmartScout, these businesses generated over $35.3 billion in annual revenue. However, with the U.S. consuming a substantial share of global e-commerce goods, the impact of these tariffs is expected to ripple across the Chinese economy.
Of five Amazon sellers interviewed by Reuters, three revealed plans to raise their U.S. prices by as much as 30%, while two said they would exit the market entirely. Dave Fong, whose product line includes Bluetooth speakers and schoolbags, has already raised prices and is cutting back on U.S. inventory and advertising. “You can’t rely on the U.S. market that’s quite clear,” Fong stated.
Brian Miller, a Shenzhen-based toy seller, said the cost of producing and shipping children’s building blocks has more than doubled under the new tariffs, making continued operations in the U.S. unfeasible without sharp price increases. “Manufacturing that serves the U.S. will have to be transferred to other countries like Vietnam or Mexico,” he noted.
Wang warned that the tariff hikes could lead to a surge in unemployment in China, as small manufacturers and exporters face unprecedented financial strain. Many sellers are now turning to alternative markets such as Europe, Canada, and Mexico, hoping to offset the losses from a declining U.S. presence.
