Trump tariffs: Chinese companies on Amazon mull price hike, potential market exit

Chinese companies on platforms like Amazon are contemplating price increases or potential market exits as a consequence of the US tariffs. This escalation is expected to impact small enterprises and manufacturers in China, potentially leading to increased unemployment.

"This isn't just a tax issue, it's that the entire cost structure gets entirely overwhelmed," said Wang Xin, the head of the Shenzhen Cross-Border E-Commerce Association, which represents more than 3,000 Amazon sellers. "It'll be very hard for anyone to survive in the U.S. market," she told Reuters.

Some sellers are looking to increase prices in the US while others are looking to find new markets, Wang said, adding that the tariffs are likely to accelerate the country’s unemployment rate.

In a significant escalation of trade tensions, China introduced an 84 per cent tariff on American goods, taking effect on April 10, 2025. This move comes as a retaliation against the United States, following former President Donald Trump’s decision to increase tariffs on Chinese imports to 104%. 

The trade war was further intensified by Trump's imposition of a 125% tariff on Chinese imports, a move justified by what he described as a "lack of respect that China has shown to the world’s markets." This has led to increased volatility in global financial markets, with significant swings observed in indices such as the S&P 500. China’s Ministry of Commerce has expressed its resolve to "fight to the end" against these tariffs, signaling a prolonged period of economic standoff. Beijing has also blacklisted 12 US companies and added six more to its "unreliable entity" list, imposing stricter export controls.

Meanwhile, China has lodged a complaint with the World Trade Organisation (WTO), describing the US' tariff measures as "dangerously escalated." The complaint reflects China's "grave concern and firm opposition" to the tariffs, which it argues will ultimately be detrimental to the US. Moreover, the European Union has indicated its readiness to implement retaliatory tariffs on American imports unless a "fair and balanced negotiated outcome" is reached, highlighting the global implications of the US-China trade conflict.

Economically, the United States continues to face a sizeable trade deficit with China, importing significantly more than it exports. In 2024, US imports from China amounted to approximately $440 billion, nearly triple the export figures to China. 

Amidst these developments, Trump authorised a temporary 90-day pause, reducing tariffs to 10 per cent for over 75 countries, as a gesture of reprieve.