Chinese businesses selling on Amazon are preparing to either raise their U.S. prices or exit the market altogether, following a significant tariff hike announced by President Donald Trump. The tariff rate on Chinese imports will jump to 125%, up from the current 104%, further straining trade relations between the world’s two largest economies.
Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association, said the tariffs are more than just a tax—they disrupt the entire cost structure for sellers. She warned that survival in the U.S. market will be difficult due to increased customs delays and higher logistics expenses. Wang described the situation as a devastating blow to the cross-border e-commerce sector.
Some sellers plan to raise U.S. prices, while others are seeking alternative markets. This sentiment was echoed by five Shenzhen-based Amazon sellers interviewed by Reuters, three of whom intend to increase prices, while two are considering leaving the U.S. market.
China plays a dominant role in Amazon’s supply chain, with Shenzhen alone hosting over 100,000 registered Amazon sellers generating $35.3 billion in annual revenue. However, with the U.S. being the largest consumer market, shifting focus to other regions like Europe, Canada, or Mexico may not fully offset the loss.
Seller Dave Fong has already increased U.S. prices by up to 30%, cut ad spending, and plans to scale down inventory. Meanwhile, Brian Miller, an Amazon seller for seven years, warned that current tariffs make it unfeasible to continue U.S. sales from China. For instance, toys once produced for $3 now cost $7 after tariffs, pushing retail prices up by 20–50%. He expects sellers may have to move manufacturing to countries like Vietnam or Mexico.
Wang also noted that the sweeping impact on China’s small manufacturers could lead to rising unemployment, intensifying the economic strain.
