Chinese sellers on the Amazon to raise our prices or get out of us with the high tariffs
Chinese sellers are preparing in Amazon to increase their goods prices or exit the United States market completely after President Donald Trump’s tariff. The increase in commercial sanctions forces the hands of retailers and wholesalers in the e -commerce industry in China to restore what they pay for imports by adding fees to consumers.
President Trump Declare On Wednesday, his administration raised the definitions of Chinese imports to 125 %, an increase of the initial level of 104 %. This step is expected to directly affect tens of thousands of Chinese Amazon merchants who are highly dependent on the American demand for consumers.
“This is not just a tax problem, it is that the entire cost structure is completely dominated.Wang Xin, president of the E -Border Electronic Trade Association, said that the group represents more than 3,000 Amazon seller in China.
Speaking to Reuters, Wang said that high commercial fees can paralyze the sellers who are now facing higher charging costs, customs complications, and challenge to maintain profit.
“For all of us in e -commerce across the border today, this is a truly unprecedented blow,She added.
Increased prices or the exit plan as the only options
Of every five of the Amazon traders, headquarters He was met By Reuters, three said they were planning to raise prices in the United States to compensate for the new costs. The two remaining two intend to withdraw from the entire market and redirect sales to other regions, such as Europe, Canada and Mexico.
Dave Fung, the Amazon seller, whose warehouses, said Bluetooth speakers and school bags, said he has no choice but to raise prices to 30 % for American buyers. He is also planning to reduce spending on Amazon ads, which was previously consumed 40 % of his revenues in the United States.
“For us and anyone else, you cannot rely on the US market, and this is completely clear,“Fung complained. Just as most of the retailers get products from China, he said he would have to expand the scope of investments in America and reserve resources to other global markets, where there is a better opportunity to make sales, and talk less than profits.
Brian Miller, another merchant on Amazon, who worked in Shenzhen for seven years, said he no longer sees the United States as a viable market for manufacturers in China. Miller stated that the increased tariff for the burden of production costs, saying that the group of children’s brick, which costs it one day, is now 3 to manufacture a total of $ 7 after the collaboration in a 125 % tariff.
To keep profit margins, Miller said the retail price for such games will need to jump at least 20 %. For high -cost elements, there may be an increase in prices of up to 50 %.
“I do not see a scenario, if things do not change, the US service from China has become viable anymore. Manufacturers may need to be transferred to countries such as Vietnam or Mexico,“Note.
China is the best selling in Amazon and a boundary commercial base
Marketplace Pulse Places More than half of all Amazon sellers in China, with the city of Chenits alone hosts more than 100,000 Amazon companies. These sellers made $ 35.3 billion in annual revenue, according to Smartscout.
Beyond Amazon, China works as a manufacturing center for other platforms such as Shein and TEMU. The value of e -commerce across the border from China was 2.63 trillion yuan (358 billion dollars) in 2023, according to the Chinese State Council.
However, sellers warn that there is no other market that provides the power of US consumption, so changing the market goal to new regions is to use domain aid to cover huge pieces, at best.
Without access to American buyers, Chinese exporters will have to fight in order to sell their products at home and in the smaller global markets, which can create price wars, and inevitably, profitability is reduced to what could not be without accuracy.
American consumers will also feel the effects
American families stated that President Trump “short -term pain” explains: This includes high prices on imported goods. According to the US Department of Industry and Security Office of the Ministry of Trade, machines, proper recording equipment, and televisions were among the most imported goods from China in 2022. These sectors constituted 46.4 % of all Chinese imports of the United States of that year.
It was expected that the pioneering iPhone, which is 16 Pro Max, was expected to cost up to $ 2000 under low -tariff levels of 54 % if Apple chose not to absorb added costs. With definitions now more than weakness, these prices can rise.
The sellers must also deal with the expiration of validity This minimum exemptionWhich allowed goods less than $ 800 in value to enter the United States exempt from fees. According to many sources that investigate the matter earlier this year, more than half of these shipments come from China, and are connected to more than 30 % to Shein and TEMU.
After midnight on May 1, taxes less than $ 800 from China will be imposed by 90 % of its declared value or $ 75 per element, or either higher. From June 1, the minimum element will double to 150 dollars, according to the White House announced last Tuesday.
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