Amazon sellers feeling the heat of US-China trade war, contrary to Donald Trump’s claims, survey shows

Jungle Scout survey shows 72 per cent of sellers have seen their cost per unit increase by some 17 per cent since the beginning of the trade war last year

First round of new US tariffs took effect on about US$110 billion of Chinese imports on September 1, with more to follow in October and December

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The survey findings contrast with US President Donald Trump’s claims that the trade war has not affected prices paid by American consumers. The US president tweeted on August 19: “import prices down, China eating tariffs”. Photo: Reuters

Published: 10:00pm, 10 Sep 2019Updated: 9:41am, 11 Sep 2019

American third-party vendors who sell on Amazon, the world’s largest e-commerce platform by revenue, singled out tariffs imposed by the United States on Chinese goods as the main reason their costs are increasing, slashing their margins and forcing them to push up prices on consumers, a new survey revealed.

Some 72 per cent of Amazon sellers have seen their cost per unit increase by around 17 per cent since the beginning of the trade war last year, according to a survey of Amazon vendors conducted by Jungle Scout, a company which helps third-party sellers set up their businesses.

The survey findings contrast with comments from US President Donald Trump, who said the trade war has not affected prices paid by American consumers, with a tweet on August 19 saying that “import prices down, China eating tariffs”.

American retailers and consumers are most worried about the imposition of a new 15 per cent tariff on consumer goods.

The new tariff took effect on the first batch of items, about US$110 billion of Chinese imports – including plastic tableware, toys and clothing – on September 1.

Amazon sellers largely source their products from China, and they’re already feeling the pain of these new tariffs

Greg Mercer

It is due to take effect on a second, US$160 billion group of Chinese goods – including smartphones and consumer electronics – on December 15. In addition, the US will increase tariffs on US$250 billion worth of Chinese goods from 25 per cent to 30 per cent on October 1.