Chinese Amazon sellers to hike prices or exit U.S. market as tariffs soar, association says
'It'll be very hard for anyone to survive in the U.S. market,' head of e-commerce association says
Chinese companies that sell products on Amazon are preparing to hike prices for the U.S. or quit that market due to the "unprecedented blow" from President Donald Trump's tariff hikes, the head of China's largest e-commerce association said.
Trump said on Wednesday he would raise tariffs on Chinese imports to 125 per cent from the 104 per cent level already in effect, escalating the high-stakes confrontation between the world's two largest economies.
"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.
"It'll be very hard for anyone to survive in the U.S. market," she told Reuters.
Some sellers are looking to increase prices in the U.S., while others are looking to find new markets, Wang said.
The tariffs will severely impact China's small enterprises and manufacturers and also rapidly accelerate the country's unemployment rate, she noted.
