With products priced below $800 (approximately 1.15 million won) unable to evade the United States' tariff barriers, Chinese small business owners targeting the U.S. market with low-cost goods are seeking ways to survive. They are redirecting their target markets to Southeast Asia and shifting to new sales platforms.
On the 15th (local time), The Washington Post reported that Chinese sellers who had been selling products on Shein, Temu, and Amazon are redefining their survival strategies in the wake of the U.S.-China tariff war.
This is related to recent decisions by U.S. President Donald Trump to impose a tariff rate of up to 145% on small goods from China. According to The Washington Post, this measure has directly impacted the Shenzhen region, which is home to more than 150,000 e-commerce corporations. Over 90% of the e-commerce corporations in Shenzhen consider the U.S. their primary market.
Wang Xin, president of the Shenzhen Cross-Border E-Commerce Association, noted, "Many corporations are stopping factory operations and taking measures such as wage cuts and mandatory leaves," adding, "Corporations’ survival is at risk."
According to data from Reuters, about two-thirds of small goods entering the U.S. are from China, with a significant number being shipped through Shein, Temu, and Amazon. The share of Chinese sellers among all Amazon sellers reaches 50%.
However, Chinese sellers are looking for alternative markets while reducing their dependence on the U.S. market, with the rapidly growing Southeast Asian market being a target. Trevor Tang, an instructor at an educational institution teaching sellers how to utilize Amazon, explained, "The instability of the U.S. tariff policy is causing many sellers to turn their attention to Southeast Asia and Russia."
Additionally, The Washington Post reported that the TikTok-based shopping platform "TikTok Shop" is emerging as a new export outlet, replacing existing sales platforms. Launched in full operation in 2023, TikTok Shop allows direct sales of products to U.S. consumers and is considered a "new unexplored blue ocean market." A consulting firm has even been established to develop strategies for raising the sales rankings of U.S. sellers within TikTok Shop.
In late 2024, Amazon in the U.S. will establish a section called "Amazon Haul," implementing a direct sales model for Chinese sellers. This indicates that the price competitiveness and product diversity of Chinese sellers are recognized even within the U.S.
Some analysts suggest that even if small goods tax exemptions are blocked, the entry of Chinese e-commerce companies into the U.S. market will not falter. Eli Clemens, a researcher at the Information Technology & Innovation Foundation, a U.S. think tank, stated, "Sellers' adaptability is excellent," and added, "They will continuously explore ways to engage with U.S. consumers."