Chinese e-commerce sellers, especially those on Amazon, are being pushed to the edge as the United States increases tariffs on Chinese goods
some reaching up to 125%. For many businesses based in China, this sharp hike has created an impossible balancing act: either raise prices and risk losing American customers or leave the U.S. market altogether.
Shenzhen, the tech and e-commerce capital of China, is feeling the heat most intensely. The city hosts over 100,000 Amazon businesses, collectively responsible for billions in annual revenue. But those numbers are now under threat. Industry insiders say rising customs costs, delayed shipments, and soaring logistics fees are making it nearly impossible for many sellers to stay afloat.
Wang Xin, who leads the Shenzhen Cross-Border E-Commerce Association, described the situation as “unsustainable.” He said sellers are under immense pressure, and many are actively looking at markets outside the U.S., such as Europe and Canada, or considering shifting their manufacturing to places like Vietnam and Mexico to bypass the tariffs.
Among several sellers interviewed, the mood is grim. Three out of five said they plan to increase prices in the coming weeks, while the others are preparing to scale back operations or leave the U.S. market entirely.
Dave Fong, who has been selling electronics and accessories on Amazon for over a decade, has already bumped his prices up by 30%. He’s also cutting back on inventory and slashing his ad spend just to break even. “This isn’t just a price hike,” he explained. “It’s survival.”
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Brian Miller, who runs a children’s toy business, echoed similar concerns. “Our production costs have doubled. There’s no way to absorb that without raising prices — we’re talking 20 to 50 percent increases.”
For smaller operations with thinner margins, the choices are even tougher. Some family-owned sellers say they may have to shut down or drastically downsize, which could cost jobs in both China and their overseas networks.
Adding to the tension is the broader political backdrop. The tariff hike comes as part of a tough trade strategy spearheaded by President Donald Trump, who recently reinstated a number of tariffs, sparing U.S. allies but hitting China hard. Beijing has responded with its own trade measures, signaling that the rift may deepen further.