The US has increased tariffs on China! Is this the darkest moment for sellers?

The US has increased tariffs on China! Is this the darkest moment for sellers?

Recently, the United States has once again dealt a heavy blow to Chinese goods, raising tariffs to 20% , making the already struggling cross-border sellers even worse!

Some sellers said bluntly: It is really difficult to do business in the US market now!



The United States adjusts tariffs, and the killer move strikes again!


On March 3, 2025 local time (13:01 Beijing time on March 4), the Trump administration officially signed an executive order to increase tariffs on Chinese goods from 10% to 20%.

That’s not all! The United States also announced:

The exemption of steel and aluminum tariffs for Canada, Mexico and other countries has been cancelled and a unified 25% tariff increase will be imposed!

All imported steel and aluminum products, regardless of their country of origin, are subject to a 25% tariff!

This wave of operations is equivalent to throwing a "depth bomb" on the global supply chain! The cross-border circle is wailing everywhere, and the thing that everyone is most worried about has happened!

In the face of this wave of challenges, China quickly fought back!

China's State Council Tariff Commission announced that starting from March 10, additional tariffs will be imposed on imported goods originating from the United States:

Chicken, wheat, corn, cotton: 15% tariff

Soybeans, pork, beef, aquatic products, fruits, vegetables, and dairy products: 10% tariff

In addition, some of the US products involved will not be exempted , which means that this trade game will be difficult to end in the short term!



Sellers' order volume plummets, are tariffs the last straw that breaks the camel's back?


"20% + 25% for 301 investigation, this is equivalent to an additional cost of 45% , plus other expenses, the profit margin is almost squeezed to the limit!"

Many sellers have already begun to feel the cold winter of skyrocketing tariffs :

Since mid-to-late February, the daily order volume of a large number of cross-border sellers has dropped to single digits!

Some low-priced products have lost their competitiveness due to price increases, and conversion rates have dropped significantly!

US consumers are holding back on spending due to price increases, causing sales to decline!

Some big sellers have already started adjusting their strategies, for example:

✅Reduce dependence on the US market and actively explore markets such as Europe and Japan!

✅Optimize the supply chain structure and look for low-tariff alternative production areas such as Southeast Asia and India!

✅Increase product added value, avoid low-price competition, and break through with brand and quality!

Some sellers even said bluntly: "The elimination rate of cross-border e-commerce will hit a new high in 2025. Only two types of people will survive: those who have a high-quality supply chain or those who know how to take advantage of the situation!"

How can cross-border sellers break through?


Under the double pressure of tariffs and policies, where should cross-border sellers go in 2025?
📌 Strategy 1: Reshape the supply chain and optimize the cost structure!
Only by finding a lower-cost, higher-quality supply chain , improving production efficiency, and reducing manufacturing and logistics costs can we gain a foothold in the price war!
📌 Strategy 2: Multi-market layout to reduce dependence on a single market!
As the risks in the US market increase, it is better to speed up the layout of sites in Canada, Europe, Japan, the Middle East, Southeast Asia, etc., to diversify risks and seize the traffic dividends in emerging markets!
📌 Strategy 3: Branding + high value-added products breakthrough!
Low-price competition is becoming increasingly difficult. Only by building a brand, increasing product added value , and making customers willing to pay for quality and service can we truly escape the quagmire of price wars!
📌 Strategy 4: Respond flexibly to policy adjustments and keep a close eye on industry trends!
The policy changes and subsidy directions of platforms such as Amazon, Temu, and TikTok Shop are worthy of attention. Only by flexibly adjusting operating strategies and keeping up with the latest trends can we maintain competitiveness!
Conclusion
The impact of tariff increases is all-round, but crises often contain opportunities. Only the fittest survive, those who adapt will succeed, and those who stick to the old ways will perish! The reshuffle of cross-border e-commerce has already begun. Whether it can turn the tide depends on who can find a new breakthrough first!
Dear sellers, has your order volume been affected recently?

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