Amazon sellers suffer from US-China trade war

U.S. third-party vendors who sell on Amazon’s e-commerce platform cited US duties on Chinese products as the main reason their costs are rising, reducing their margins and forcing them to raise consumer prices, writes the South China Morning Post.


About 72% of Amazon sellers have seen an increase in unit costs of about 17% since the start of the trade war last year, according to a Jungle Scout Amazon vendor survey.


The survey results contrast with the comments of US President Donald Trump, who insisted that the trade war did not affect prices for American consumers.

The trade war between the United States and China has been going on for more than a year. During this time, the parties introduced mutual duties worth hundreds of billions of dollars.


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According to Vesti.Ekonomika, on September 1, the Trump administration announced an increase in duties on Chinese imports by $ 112 billion. China responded by raising duties on goods in the amount of $ 75 billion.

The increase in US duties will be phased. Starting September 1, only part of the goods will be levied with new duties, and by the end of the year, the United States will introduce a new 15% duty on Chinese goods worth $ 160 billion, including laptops and mobile phones.

In addition, from October 1, the United States will increase duties on Chinese goods in the amount of $ 250 billion from 25% to 30%.

«Amazon sellers mainly ship their products from China, and they are already negatively impacted by these new duties,» said Gung Mercer, founder and CEO of Jungle Scout. «For many, these duties can decide the fate of the seller’s business.»

Manufacturers and suppliers in China are also seeing declines in purchases from US customers.

Although 19% of Amazon sellers surveyed in the Jungle Scout said they wanted to move their production to the United States, they still need to import manufacturing materials from China or other countries.

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