China’s Amazon Sellers Brace for U.S. Price Hikes or Exit Amid Trump’s Tariff Surge
Chinese sellers on Amazon are preparing to either raise prices sharply in the United States or abandon the American market altogether, following President Donald Trump’s decision to raise tariffs on Chinese imports to 125%, from an already steep 104%.
“This isn’t just a tax issue, it’s that the entire cost structure gets entirely overwhelmed,” said Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association, representing over 3,000 Amazon sellers.
“For all of us in the cross-border e-commerce business today, this is truly an unprecedented blow.”
Tariffs Threaten China’s E-Commerce Backbone
China is home to nearly half of all Amazon sellers, with over 100,000 businesses registered in Shenzhen alone, generating $35.3 billion annually, according to SmartScout.
Imports and exports related to cross-border e-commerce reached 2.63 trillion yuan ($358 billion) last year, highlighting the vast scale of China’s involvement in the global digital economy.
However, the new tariffs—which come amid an intensifying trade confrontation—are set to disrupt logistics, delay customs processes, and squeeze already thin margins.
Sellers React: “The U.S. Market Is No Longer Reliable”
Among five Shenzhen-based Amazon sellers interviewed by Reuters, three said they would raise prices, while two planned to exit the U.S. market entirely.
Dave Fong, who sells schoolbags and Bluetooth speakers, confirmed he has increased U.S. prices by up to 30%. He plans to let inventory fall and cut spending on Amazon ads, which previously consumed 40% of his U.S. revenue.
“You can't rely on the U.S. market, that's quite clear,” said Fong. “We’re shifting investment to Europe, Canada, Mexico, and beyond.”
Brian Miller, an Amazon seller in Shenzhen for seven years, stated that once his current inventory runs out in 1–2 months, his products could become unsellable without significant price hikes.
“A toy we sell for $20 costs $3 to make—now with tariffs, that’s $7. To keep our margins, prices would have to rise at least 20%, and for more expensive toys, maybe 50%.”
He added, “If this continues, manufacturing for the U.S. will have to move to places like Vietnam or Mexico.”
Ripple Effects on China’s Economy
Wang Xin warned that the escalating tariffs may drive a surge in unemployment across China, especially among small manufacturers and exporters who heavily depend on the American market.
“The tariffs are more than just trade policy—they threaten the survival of countless businesses.”
