Trump tariffs mean higher prices, big losses for Amazon sellers that source from China [CNBC]
PUBLICIS GROUP SA S/ADR (PUBGY)
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Source: CNBC
Many sellers on Amazon count on China for manufacturing and assembly due to lower costs and established infrastructure – up to 70% of goods on Amazon come from China, according to Wedbush Securities. With nearly all imports from China being taxed a under the latest tariffs, Amazon sellers are having to decide whether to raise prices or absorb the vastly increased cost of importing their goods. Amazon CEO Andy Jassy on Thursday that its vast network of third-party sellers will likely “pass the cost on” to consumers. He added that Amazon has done some “strategic forward inventory buys” and looked to renegotiate terms on some purchase orders to keep prices low. Although Trump temporarily lowered tariffs on most countries to 10% on Wednesday, he doubled down on the huge tariffs on goods from China. Before the pause, average tariff rates under Trump were at the highest level . The “reciprocal tariffs” were far steeper in regions like Southeast Asia. Tariffs also hit U.S. allies at unu
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