The head of China's largest e-commerce association said Chinese companies selling on Amazon prepare to raise prices in the United States or leave the market after President Donald Trump's "unprecedented" tariff crackdown.
Trump said on Wednesday that tariffs on Chinese imports would rise from 104 percent to 125 percent, escalating a high-stakes showdown between the world's two largest economies.
"This is not just a tax issue; the entire cost structure is being completely squeezed," Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association, which represents more than 3,000 Amazon sellers, told Reuters.
"It will be tough for everyone to survive in the U.S. market," he said.
He added that some sellers are planning to raise prices in the United States, while others are looking for new markets. Wang:
He stressed that the tariffs would seriously damage China's small businesses and manufacturers and sharply accelerate the growth of the country's unemployment rate.
