Tariffs Force Chinese Sellers to Raise Prices or Leave Amazon

U.S. tariffs have reportedly left Chinese companies on Amazon with a tough choice: Hike their prices, or leave the platform altogether.

That’s according to a report late Wednesday (April 9) by Reuters, citing interviews with those merchants and the head of China’s largest eCommerce association.

The shift follows President Donald Trump’s announcement that he would increase tariffs on Chinese imports to 125% from the 104% level already in place, even as the White House placed tariffs on other nations on hold.

“This isn’t just a tax issue, it’s that the entire cost structure gets entirely overwhelmed,” Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association, told Reuters.

“It’ll be very hard for anyone to survive in the U.S. market,” she said, pointing out the tariffs could also lead to customs delays and increased logistics costs.

“So for all of us in the cross-border eCommerce business today, this is truly an unprecedented blow,” said Xin, whose organization represents more than 3,000 Amazon sellers.

The report notes that China is home to roughly half of Amazon merchants, with more than 100,000 based in the city of Shenzhen alone, generating annual revenues of $35.3 billion.

Of the five sellers interviewed by Reuters, three said they would look at hiking prices for their exports to the U.S., while two planned to exit the market altogether.

In related news, a report earlier this week by Bloomberg News said that Amazon had canceled orders from multiple vendors in China and other Asian countries. While the cancellation orders did not mention the tariffs, their timing suggests they were in response to the duties.

The extent of the cancellations wasn’t clear. One vendor told Bloomberg that Amazon had canceled a $500,000 order, while an eCommerce consultant said the company had canceled orders from “several” clients.

Meanwhile, PYMNTS on Thursday (April 10) examined the fallout from the tariffs so far in the wake of Trump’s suspension.

“The pause provided temporary relief to many industries and markets, as seen in the Dow Jones surge by nearly 2,200 points,” that report said.

“However, companies and economists remain cautious about its long-term implications. The freeze does not eliminate tariffs entirely, leaving uncertainty about future trade policies but also pulling the covers on what companies may do if the temporary freeze is lifted for an appreciable amount of time.”

The post Tariffs Force Chinese Sellers to Raise Prices or Leave Amazon appeared first on PYMNTS.com.