The United States will impose tariffs on Amazon sellers in July!

At the beginning of June, when I summarized the most important things of the month for everyone, I reported that the United States would hold a hearing on June 17 to discuss whether to implement the new 300 billion tariff list.

Let's first review the whole process of the 300 billion tariff. In May, China and the United States resumed trade frictions, and Chinese products worth 200 billion US dollars have been forced to pay an additional 25% tariff.

However, the categories covered by this tariff are mostly intermediate products, so most of our Amazon sellers are not affected.

However, as the friction between the two sides further escalated, the Office of the United States Trade Representative (USTR) proposed last month to add the remaining categories of Chinese goods worth 300 billion that have not yet been taxed to the list of additional 25% tariffs.

This new 300 billion list is completely different from the last one. The categories involved are almost all terminal products for ordinary consumers, covering almost all categories of our Amazon sellers.

Of course, the proposal is a proposal, and even if the United States wants to do such a harsh measure, it has to think twice. Therefore, on June 17, the United States will hold a hearing for many American companies and consumer representatives, and their opinions will determine the outcome of the tax increase.

So what was the outcome of this hearing?

The hearing will last for seven days, from the 17th to the 25th. 320 companies attended the hearing, including retailers Bestbuy, New Balance and China's TCL North America.

Even on the day of the hearing, several US industry giants issued statements urging USTR to withdraw the $300 billion proposal, including many well-known bigwigs.

All statements submitted to USTR unanimously stated that the $300 billion list would cause far more harm to American businesses and consumers than to China.

The owners of various small and medium-sized enterprises who participated in the hearing also had various complaints. According to foreign media reports, there were stores that were forced to lay off employees due to rising costs, and there were local bridal salons that were unable to deliver goods due to the bankruptcy of their suppliers. All of them strongly opposed the imposition of tariffs at the hearing.

Although the hearing has not ended yet, given such strong opposition, is it possible that Trump will not be able to get the $300 billion this time?

It’s hard to say, because the same thing happened at the hearing on the $200 billion tariff list last year. The final result was that Trump implemented the $200 billion tariff list despite the opposition of domestic consumers and entrepreneurs.

And judging from the recent voices from foreign media and the signals from US spokespersons, the results may not be ideal.

Just the day after the hearing began, something very important happened. Our leader met with Trump by phone on the 19th Beijing time. (The key point is that Trump took the initiative to call us.)

The content of the conversation was mostly diplomatic rhetoric. At the end of the call, the two leaders agreed to have further discussions at the G20 summit in Osaka on the 28th.

This phone call sent a signal that things might be turning around. Trump has recently announced his official candidacy for the next president, but poll results are very pessimistic, with his support rate in some states lagging behind Biden and other Democratic candidates.

It seems that when American consumers find that the impact is not what Trump initially promised, prices have gone up and jobs have been laid off, they will use their votes to sanction Trump, the big liar.

On the one hand, Trump is subtly showing weakness, while on the other hand, his right-hand men still maintain a tough stance.

U.S. Commerce Secretary Wilbur Ross said the United States is ready to impose tariffs on the remaining $300 billion of Chinese goods even if there is no trade deal.

A meeting between the two sides at the G20 summit in Osaka could delay that decision, but "Osaka is clearly not a place where you can negotiate a 2,500-plus-page agreement," Wilbur Ross said.

The Commerce Minister also released important information that the additional 300 billion list will take effect after the final rebuttal comment period of the hearing, which is around July 2!

Will Amazon sellers have to pay a 25% tax next month? Although Trump and the Commerce Secretary are suspected of playing a double game, the $300 billion list is indeed a key trump card for the US.

Judging from the style of this US administration, it is very likely to use extreme pressure. At this point, the outcome of the hearing can no longer influence the US government. If there is any chance of turning around, it is the meeting between the leaders of the two sides at the G20 summit in Osaka.

I will keep an eye on the tariff incident and report to you in a timely manner. Given the high probability of the 300 billion list being implemented, everyone should also be prepared in advance! If you need to see if your product is on the 300 billion list, scan the QR code below to add me to receive the list~

PS. If you want to join the seller discussion group, you can also private message me to let me add you to the group

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