Tariffs soared 40 times! Many sellers may go bankrupt!
On April 10, local time, the White House clarified that the total tariff imposed by Trump on China was 145%, not 125% as previously stated. In addition, in the revised executive order issued on Thursday, Trump announced a further increase in tariffs on small Chinese goods worth $800 or less. According to the latest White House executive order:
American sellers may go bankrupt due to tariffs
Recently, the US government announced the imposition of so-called "reciprocal tariffs", which caused global market turmoil and widespread concern in the international community, and the lives of ordinary Americans were also affected. Fortune magazine reported that American sellers on the US e-commerce Amazon platform may go bankrupt due to tariffs.
The report takes a small Idaho company with annual sales of $5 million as an example. The company sells sensory swings and other products for children with special needs through the Amazon platform, and also provides online tutorials. However, due to the Trump administration's "reciprocal tariff" policy, the company will face a devastating blow due to high tariffs within a few months.
Casey Ames, the operator of this company, did some calculations: there is a batch of goods waiting to be shipped from China. If it is based on the situation in 2024, he will have to pay a tariff of $4,707. But if the goods arrive at the US port in mid-June this year, the expected tariff to be paid will soar to $190,000.
"It's ridiculous," Ames did not hide his dissatisfaction with the high tariffs. "It's impossible to do it at all." He said that the company would be forced to shut down its physical product business and only do online course business.
Trump's tariff policy has pushed his business into a desperate situation. Ames said that he tried to find suppliers in the United States a few years ago, but found that the quote was even higher than the retail price of his company's products. Ames wants to try his luck again and is looking for sources in the United States, but he said his hope is slim.
Ames currently has 10 employees. If the physical product business is shut down, half of the employees will be fired. "I want to look them in the eye and tell them that I tried my best. I think they will understand."
The report said that Ames's predicament is by no means an isolated case. Thousands of small and medium-sized enterprises in the United States rely on the "Made in China + Amazon Sales" business model to survive. Amazon's 2023 data showed that such companies created nearly 2 million jobs in the United States. If tariffs remain at the current level, a large number of American companies will go bankrupt.
If the United States imposes additional tariffs in the future, China will ignore it
On the 10th local time, US President Trump once again threatened that if the relevant countries cannot reach an agreement with the United States within 90 days of the suspension of tariffs by the United States, the previous tariff policy will be restored.
On April 11, the State Council Tariff Commission announced an announcement to adjust the tariff measures on imported goods originating in the United States. From April 12, 2025, the tariff rate on the United States will be increased from 84% to 125%. Given that at the current tariff level, there is no market acceptance for US goods exported to China, if the US continues to impose tariffs on Chinese goods exported to the US, China will ignore it.
On April 11, the Ministry of Foreign Affairs responded to "US tariffs on China reached 145%"! China never buys this! Foreign Ministry spokesman Lin Jian hosted a regular press conference. A reporter asked about "US claims that tariffs on China reached 145%". Lin Jian said that China has repeatedly stated its solemn position on tariffs. There are no winners in tariff wars and trade wars. China is unwilling to fight, but is not afraid of fighting. If the US really wants to solve the problem through dialogue and negotiation, it should stop exerting extreme pressure and acting recklessly. China never buys this. Any dialogue must be based on equal respect and mutual benefit. If the US insists on fighting a tariff war and a trade war, China will definitely fight to the end.
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