[Source/Observer Network, Ruan Jiaqi]
In response to the US tariff coercion, starting from 12:01 a.m. on April 10, China has imposed an additional 84% tariff on all imports from the United States, which has officially taken effect.
According to a report by British media Reuters on the 10th, facing the destruction caused by Trump's tariff chaos, Chinese companies selling goods on Amazon are preparing to raise prices in the US market or completely exit the US market and turn to explore other new markets.
The Shenzhen Cross-border E-commerce Association represents more than 3,000 Chinese sellers operating on Amazon. President Wang Xin told Reuters, "This is not just a tax issue; the entire cost structure has been completely disrupted." She added, "Under these circumstances, it will be very difficult for anyone to survive in the US market."
President Wang pointed out that tariffs not only cause delays in customs clearance but also lead to a significant increase in logistics costs, affecting small businesses and manufacturers in China. "So, this is truly an unprecedented impact on all of us engaged in cross-border e-commerce today," she said.
Quoting data from e-commerce service provider SmartScout, British media reported that about half of Amazon's sellers come from China, with over 100,000 Amazon merchants registered in Shenzhen alone, generating annual revenue of $35.3 billion. According to data from China's General Administration of Customs, in 2024, China's cross-border e-commerce import and export reached 2.63 trillion yuan, up 10.8% year-on-year.
On May 20, 2022, in the Pansheng computer assembly workshop in Wuhu, Huangpi District, Wuhan, four production lines were fully operational. The company mainly deals in high-performance custom computers, all-in-one computers, laptops, and related peripheral devices, with major sales channels including Tmall, JD.com, and Amazon. Its products are sold to 130 countries and regions worldwide, and its online custom computer sales rank first globally. Visual China
In interviews with five Chinese sellers, three said they would increase the price of their products exported to the US, while two planned to completely exit the US market.
Dave Fong, who sells a wide range of products from backpacks to Bluetooth speakers, said on Thursday that he had already raised the prices of his products in the US by 30%, and planned to reduce inventory levels while cutting advertising expenses on the Amazon platform. This expense once accounted for 40% of his revenue in the US.
"It is clear that we can no longer rely solely on the US market," Fong said. "We must reduce our investment in the US and allocate more resources to Europe, Canada, Mexico, and other parts of the world."
Brian Miller, who has been selling on Amazon in Shenzhen for seven years, also considered raising prices. He believed that under the current trade environment, there was no reason to develop new products. He estimated that when existing inventory is sold out in one or two months, both he and other sellers will have to significantly raise prices.
Miller gave an example: an Amazon-sold children's building block priced at $20 originally cost his company $3 to produce, but after adding tariffs, the cost increased to $7. To maintain profit margins, he would need to raise the price by at least 20%, and the price of expensive toys might even rise by 50%.
Miler bluntly stated that if the situation does not improve, "I really don't see any feasibility in supplying products from China to the US."
On April 10, a spokesperson for China's Ministry of Commerce reiterated strong condemnation and opposition to the US actions that seriously infringe upon the legitimate rights and interests of Chinese enterprises and severely disrupt the global economic order. The statement mentioned that relevant business associations, large supermarkets, and circulation enterprises have been organized to hold discussions, exploring how to better leverage each advantage to help foreign trade enterprises expand domestic sales channels.
According to interviews conducted by Agence France-Presse (AFP) on Beijing streets, some Chinese consumers who have the habit of purchasing American brands expressed willingness to change their consumption habits and choose domestic brands instead.
However, for American consumers, their options are not so plentiful. A report by Hong Kong's South China Morning Post on the 10th pointed out that Trump's tariff measures will backfire because tariffs not only impose the heaviest burden on American consumers, especially those unable to afford expensive alternatives, but also cannot shake China's position as the largest producer of daily necessities.
American trade data reveals this astonishing reality: approximately 85% of pens and pencils produced in the US are made in China. In 2022 alone, Americans purchased $430 million worth of pens from Chinese suppliers. Even leading American brands like BIC and Paper Mate rely on Chinese components. Data shows that China holds 80% of the global stationery market share.
In American households, one-third of garlic, half of low-priced furniture, and nearly 80% of Christmas toys are made in China. Even the wooden frames of Trump portraits displayed in every US government office may come from China since China supplies 70% of US picture frames.
"When Trump signed the executive order on April 2 to launch a tariff war against the globe, the pen he held could very likely be made in China," the Hong Kong media emphasized. China's dominance in these easily overlooked, small yet important daily items is built on its economies of scale and production efficiency, which are difficult for factories in the US or any other country to match.
The article reiterates that tariffs may sound tough, but in practice, they often amount to taxing ordinary Americans. Unless the US can rebuild its manufacturing base or persuade consumers to pay higher prices for domestic essentials, no matter how many tariffs are signed into law, they will not undermine China's control over daily necessities.
American magazine Wired also reminded Americans that due to China's large exports of laptops to the US, tariffs will cause the prices of many electronic products, including laptops, to rise in the coming months. "If you need to buy new electronics, now is the time to do so!"
Citing remarks from Jason Miller, a professor of supply chain management at Michigan State University, the report noted that tariffs are usually borne by importers, who often pass this extra cost onto consumers. This means that a laptop imported at a cost of $400, with an average gross margin of 30%, would rise to $571. "This is the price you'll need to pay at large retail stores," he explained.
Miller predicted that after existing inventory is depleted, electronic product prices will surge dramatically starting in June or July.
He also added that besides price increases, the variety of products available to consumers will decrease. "What will importers do? They will only import the most profitable and best-selling products. Because they know that under the current tariff policy, only such products remain profitable." Additionally, for products to which consumers are highly sensitive to price increases, the impact of tariffs will be even more negative.
Estimates by US media of Apple phone price changes affected by Chinese tariffs
Currently, a "stockpiling wave" has begun to emerge. Reuters reported on the 8th that in the past two weeks, anxious American consumers could be seen "madly stockpiling" in Costco, Walmart, and other American stores.
Angelo Barrio, a 55-year-old retired clothing industry worker, stocked up on toothpaste, soap, drinking water, and rice at Costco this week. At Walmart, he bought two bottles of olive oil, bringing his total number of stored olive oils to 20.
Talking about Trump's pressure tactics, Barrio expressed sympathy for China's plight and criticized Trump's tariff scheme as "stirring up trouble and creating chaos."
"They haven’t done anything wrong, yet they are being punished unjustly," he said. "I have always been grateful to them for providing us with various goods at such affordable prices."
Well-known American investment bank Wedbush Securities directly stated on Tuesday that targeting countries like China with such high tax rates is akin to "capsizing in the open sea without a lifeboat."
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