Raise prices or exit: How Chinese sellers respond to Trump's tariffs
Photo: China to raise prices for US due to Trump's trade war (Getty Images)
Chinese companies selling goods on Amazon are preparing to raise prices for the US market or quit the market due to unprecedented tariff hikes announced by President Donald Trump, Reuters reports.
Trump stated he would raise tariffs on Chinese imports to 125%, up from the current 104%, further escalating the already tense confrontation between the world's two largest economies.
"This isn't just a tax issue, it's that the entire cost structure gets entirely overwhelmed," said Wang Xin, Head of the Shenzhen Cross-Border E-Commerce Association, which represents more than 3,000 Amazon sellers.
According to her, "It'll be very hard for anyone to survive in the US market."
Wang said that some sellers are looking to raise prices in the US, while others are seeking new markets.
She added that the tariffs would seriously affect small businesses and manufacturers in China, and would quickly increase the unemployment rate in the country.
Beijing may respond again to Washington by imposing 84% tariffs on US imports as early as Wednesday, in response to Trump's earlier levies salvos. He has repeatedly vowed to "fight to the end" in the escalating trade war between the two economic superpowers.
"Right now, the US and China are teetering on the edge of war," said Chris Turner, Head of Global Markets at ING.
Beijing said it had held talks with the European Union and Malaysia to strengthen trade in response to the growing tensions, although Australia stated it had rejected China's proposal - despite China being its main trading partner - to jointly counter the tariffs.
As previously reported, Trump's tariffs against China could lead to the price of an Apple iPhone skyrocketing to around $3,500 if the devices are manufactured in the US.
