Amazon and Chinese Sellers React to Tariff Hikes

Chinese companies selling products on Amazon are contemplating price hikes or exiting the U.S. market following President Trump's announcement of increased tariffs on Chinese imports to 125%, exacerbating trade tensions. The Shenzhen Cross-Border E-Commerce Association, representing over 3,000 Amazon sellers, warned that these tariffs could severely impact small manufacturers and potentially increase unemployment in China. In response, some sellers plan to increase prices or explore new markets to counteract these costs. Concurrently, Amazon has canceled several orders from vendors in China and Asia, potentially in reaction to these tariffs, leaving vendors with unsold inventory and financial strains. This strategic move by Amazon aims to mitigate its exposure to the tariff increases and highlights the broader implications of the ongoing trade conflict. Both China and the U.S. face potential economic setbacks from this escalating trade war.