Chinese sellers on Amazon are facing a tough decision—raise their prices significantly or pull out of the U.S. market altogether. This comes in the wake of former President Donald Trump’s announcement that tariffs on Chinese goods will be raised to an unprecedented 125%, up from the current 104%. The move is expected to shake the global e-commerce landscape, with Chinese vendors among the hardest hit.
According to Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association, this development is more than a tax hike—it’s a game-changer. “This isn’t just a tariff issue; it completely disrupts the cost structure,” Wang said. Her association represents over 3,000 Amazon sellers, many of whom are now scrambling to adapt. The increased costs from tariffs, coupled with expected delays at customs and rising logistics expenses, could cripple their ability to compete in the U.S. market.
For sellers, the options are limited: raise prices for American consumers or abandon the market altogether. Reuters spoke with five Amazon sellers based in Shenzhen, and their responses painted a grim picture. Three plan to increase prices in the U.S., while the other two are preparing to exit the market entirely.
China remains a powerhouse on Amazon, making up nearly half of its sellers. In Shenzhen alone, more than 100,000 Amazon-registered businesses generate an estimated $35.3 billion in annual revenue. Beyond Amazon, China also hosts key manufacturing bases for e-commerce giants like Shein and Temu. Last year, China’s cross-border e-commerce trade was valued at over 2.6 trillion yuan ($358 billion).
But while China dominates global e-commerce exports, no market can match the scale of U.S. consumer demand. That makes the tariff increase even more damaging—there simply isn’t enough purchasing power elsewhere to absorb the surplus goods, raising the risk of brutal price wars that could slash profits for exporters.
Take Dave Fong, a seller of items ranging from schoolbags to Bluetooth speakers. He’s already raised U.S. prices by up to 30% and is scaling back inventory and ad spending. “You can’t rely on the U.S. anymore,” he said. “We’re shifting our focus to Europe, Canada, Mexico, and other regions.”
Brian Miller, another long-time Amazon seller from Shenzhen, says the situation leaves little room for growth. He predicts price hikes of 20% to 50% depending on the product. For example, a toy that costs $3 to make now costs $7 after tariffs. To maintain profit margins, he’ll have to raise prices to $24 or more. “If this continues, selling to the U.S. from China won’t make sense. We’ll need to move manufacturing to places like Vietnam or Mexico.”
Experts warn the fallout could be severe, especially for China’s small businesses and manufacturers. The surge in tariffs could cause rising unemployment and force a major rethinking of global supply chains.
