An Amazon e-commerce delivery station in Alpharetta, Georgia, USA - Photo: AFP
CNBC reported on April 10 that sellers on Amazon - the e-commerce platform that accounts for 60% of online shopping sales in the US - are in a state of panic.
About 70% of products sold on Amazon are made in China, according to an analysis by investment bank Wedbush, and sellers of these items are struggling to decide whether to raise prices to offset rising import costs.
Prices on some items on Amazon have increased since then. Vogue handbags, for example, have gone from $90 to $95. Chinese furniture company Havenly has also started charging a 7.5% “import fee” per item on some of its products.
Observers say that businesses with manufacturing facilities in China are at risk of having to close their businesses due to high tariffs. The Trump administration has imposed a "huge" 145% tariff on Chinese goods.
In addition, in the context of not knowing how long the tariff war between the US and China will last, it will be difficult for these traders to immediately move production and assembly facilities from China to other countries.
Moreover, even if they move their manufacturing plants to another country, traders still have to pay production costs that are twice as high as the cost of manufacturing products in China.
China is home to many manufacturing and assembly plants due to its cheap labor and relatively low production costs. After being finished, the products will be shipped to the US and many other countries around the world for sale.
Responding to Reuters on the same day, Chairman of the Shenzhen Cross-Border E-Commerce Association Wang Xin said that most Chinese companies selling on Amazon were preparing to withdraw from this e-commerce platform.
Chosun newspaper quoted a number of informed sources as saying that about half of the sellers and businesses selling on Amazon are currently in China, of which more than 100,000 businesses are in Shenzhen city, southern China.
Some analysis shows that not only Amazon but also popular Chinese online shopping applications in the US such as Temu or Shein are in a "dying state", even facing the risk of ceasing operations in the US market.
These apps often sell products at extremely low prices, taking advantage of the US tax-free system for products priced under $800.
However, US President Donald Trump announced that he would abolish this system from May 2. Thus, parcels worth less than $800 will still be subject to a 30% tax or a flat fee of $25. Meanwhile, parcels worth more than $800 will be taxed at 145%.
On April 10, President Trump determined that the US tariff rate on China now totals 145% after the latest increase.
In response to Washington's latest tax increase, Beijing on April 11 decided to increase tariffs on US imports to 125% and declared this to be the final tax increase.
Source: https://tuoitre.vn/nguoi-ban-tren-amazon-khoc-rong-vi-my-ap-thue-khung-hang-hoa-den-tu-trung-quoc-20250411145719195.htm
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