By David Kirton
SHENZHEN, China, April 10 (Reuters) - Chinese companies that sell products on Amazon AMZN.O are preparing to hike prices for the U.S. or quit that market due to the "unprecedented blow" from President Donald Trump's tariff hikes, the head of China's largest e-commerce association said.
Trump said on Wednesday he would raise tariffs on Chinese imports to 125% from the 104% level already in effect, escalating the high-stakes confrontation between the two world's largest economies.
"This isn't just a tax issue, it's that the entire cost structure gets entirely overwhelmed," said Wang Xin, the head of the Shenzhen Cross-Border E-Commerce Association, which represents more than 3,000 Amazon sellers.
"It'll be very hard for anyone to survive in the U.S. market," she told Reuters.
Some sellers are looking to increase prices in the U.S. while others are looking to find new markets, Wang said.
The tariffs will severely impact China's small enterprises and manufacturers and also rapidly accelerate the country's unemployment rate, she added.
(Reporting by David Kirton; Editing by Jamie Freed)
((David.Kirton@thomsonreuters.com;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.