The latest 125% import tax imposed by President Donald Trump has heavily impacted businesses in China, especially those selling products on Amazon. Many sellers are now considering raising prices in the United States or withdrawing from the market altogether.
The head of a major e-commerce association in China stated that the increased costs have become unbearable for businesses, particularly small ones that are unsure how to proceed. This could potentially lead to an increase in unemployment as manufacturers struggle to adapt.
In response, Amazon has begun cancelling orders for products manufactured in China and other Asian countries, such as beach chairs and scooters. This sudden cancellation has caught many business owners off guard, forcing them to sell their products elsewhere, often at lower profit margins.
Many businesses fear renegotiating agreements with Amazon or finding new customer bases, while the ongoing trade war continues to impact Amazon’s stocks, causing concerns about a possible economic downturn.
Source: Reuters and South China Morning Post
TLDR: President Trump’s recent 125% import tax in China has negatively affected businesses, particularly those selling on Amazon, leading to potential price hikes, market withdrawals, and economic uncertainties.
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