The United States has resumed punitive tariffs! Sellers should pay special attention in the second half of the year

Just yesterday, the United States announced that it would impose retaliatory tariffs of 25% on goods from six countries with a total value of approximately US$2.1 billion, including the United Kingdom, Italy, Spain, Turkey, India and Austria .

The U.S. Trade Representative said that this move was because these countries imposed discriminatory digital service taxes on U.S. technology giants, and the retaliatory tariffs were a counterattack against the digital taxes. The punitive tariffs will be implemented after 180 days , during which time the U.S. Trade Representative and negotiators from various countries will continue to negotiate details to decide whether the final tariffs will be implemented.

According to data released by foreign media, the targets of the US tariff increase this time are mainly British goods such as clothing, shoes, hats, and cosmetics worth US$887 million, Italian goods such as clothing, backpacks, and optical lenses worth a total of US$386 million, as well as Spanish goods worth US$323 million, Turkish goods worth US$310 million, Indian goods worth US$118 million, and Austrian goods worth US$65 million.

At the same time, France may also become the next target of retaliatory tariffs by the United States. As one of the countries that strongly supports the imposition of digital taxes on American technology companies, France took the lead in imposing a 3% digital tax on Amazon last year. Amazon then raised this fee on the sellers, causing a lot of criticism from the sellers.

Currently, the finances of European countries are facing deficits due to the epidemic. The digital tax on American technology companies is to raise money to subsidize the finances. The United States' heavy blow to Europe this time also has a longer-term purpose. The trade representative mentioned at the speech that the United States currently has a suspended punitive tariff policy with the European Union and some other countries. If the results of further negotiations with them are not ideal in the future, these policies may be restarted . It is well known that when Trump was in office, the European Union and China were the ones who had a fierce trade war with the United States . It goes without saying who these "other countries" are.

We are about to enter the second half of the year, which is also the main battlefield for us Amazon sellers. This year, we may even have another big promotion like Primeday in October. If tariffs are increased, it will undoubtedly have a huge impact on our business.

Currently, the first phase trade agreement between the United States and us has reduced tariffs on some categories, but has not completely eliminated them. In addition, there are still many more punitive tariffs that have been maintained until now by relying on some exemption policies. In fact, these are the "suspended tariff policies" mentioned by the U.S. Trade Representative above.

These include medical equipment such as masks, ventilators, stethoscope covers, and cotton gauze , as well as many Bluetooth headsets and other data transmission devices, as well as some musical instruments, monitors and other entertainment and electronic equipment . The United States has been using exemptions to suspend tariffs on these categories since the end of last year, extending them for a month or so each time they are about to expire, and canceling the exemptions and implementing punitive tariffs when there is any disturbance (such as this time with Europe).

Ever since we confronted the United States in March, the atmosphere between the two sides has been relatively tense. We may be the next to Europe. If trade frictions arise again, the products on the exemption list will definitely be the first to be affected . For sellers whose product categories are on the exemption list, I suggest that those who have the ability adjust the stocking period to a longer period, maintain inventory at a relatively high level while the punitive tariffs have not yet been implemented (also pay attention to the backlog problem) and keep a close eye on the subsequent negotiations between the United States and Europe, as well as some actions on tariffs.