Chinese Amazon Sellers May Exit U.S. Market Amid Soaring Tariffs

Chinese sellers on Amazon (NASDAQ: AMZN) are considering sharp price increases or exiting the U.S. market due to a major escalation in tariffs. President Donald Trump announced plans to raise tariffs on Chinese imports from 104% to 125%, intensifying the ongoing trade tensions between the world’s two largest economies.

Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association—which represents over 3,000 Chinese Amazon sellers—described the tariff hike as an "unprecedented blow" that could make it unsustainable for small businesses to operate in the U.S. “It’s not just about taxes. The entire cost structure becomes unmanageable. It will be very hard for anyone to survive in the U.S. market,” Wang told Reuters.

As a result, many sellers are now weighing their options. Some are preparing to increase product prices in the U.S. to offset the impact, while others are actively exploring alternative international markets.

The steep tariffs threaten to severely affect China’s manufacturing sector, especially small and medium-sized enterprises (SMEs), which rely heavily on U.S. e-commerce platforms for revenue. Wang also warned that the rising costs could drive widespread closures and contribute to a surge in unemployment across China.

This development marks a critical juncture for cross-border e-commerce, particularly for Chinese businesses that have thrived on Amazon’s global reach. As uncertainty grows, the long-term viability of Chinese sellers in the U.S. market appears increasingly at risk.

The tariff escalation underscores the broader economic fallout of trade policy decisions and signals potential disruptions in global e-commerce supply chains. Both sellers and consumers may soon feel the effects, as prices rise and product availability shifts.