By David Kirton
Chinese companies in Shenzhen, China (Reuters) that sell products on Amazon are preparing to increase prices for the United States or leaving this market due to the unprecedented price hike by President Donald Trump, sellers and the leader of the largest electronic commerce association.
Trump said Wednesday that it would increase prices on Chinese imports to 125% compared to 104% already in force, degenerating the confrontation with high issues between the biggest economies in the world.
“It is not only a tax problem, it is that the entire cost structure is completely overwhelmed,” said Wang Xin, head of the Shenzhen Cross-Border Association of electronic commerce, which represents more than 3,000 Amazon sellers.
“It will be very difficult for anyone to survive on the American market,” she told Reuters, noting that prices could also cause customs delays and higher logistics costs.
“So, for all of us in cross -border electronic commerce activities today, it’s really an unprecedented blow.”
Some sellers seek to increase prices in the United States while others seek to find new markets, Wang said in the comments supported by five Amazon Sellers based in Shenzhen interviewed by Reuters on Thursday.
China is home to about half of Amazon sellers, with more than 100,000 Amazon companies registered in the southern city of Shenzhen, generating annual income of $ 35.3 billion, according to the SmartScout electronic trade service provider.
China also hosts the manufacturing bases of other large platforms of electronic commerce such as Shein and Temu. Imports and exports involving cross -border electronic commerce were worth 2.63 billions of yuan ($ 358 billion) last year, according to the Chinese Council of State.
No other country is even closer to the power of American consumption, considerably limiting the production that the rest of the world can absorb and increase the risk of intensifying price wars among Chinese exporters pressing profitability.
Of the five sellers who spoke to Reuters, three said they would seek to increase the prices of their exports to the United States, while two planned to leave the market entirely.
Dave Fong, whose products range from school bags to Bluetooth speakers, said Thursday that it had increased prices in the United States up to 30% and would allow inventory levels to lower and reduce expenses on Amazon advertising costs, which once go up 40% of its American revenues.
“For us and anyone else, you cannot count on the American market, it’s quite clear,” said Fong. “We have to reduce investments and put more resources in regions like Europe, Canada, Mexico and the rest of the world.”
