US Businesses Struggle as Tariffs Leave Hundreds of Thousands of Dollars' Worth of Goods Stranded in China

A small business in New Hampshire has $250,000 worth of goods stuck in China, with tariffs of up to $400,000, forcing the company to freeze shipments, orders, and production. This plight highlights the difficulties faced by American enterprises as a result of the US government's tariff policies. With the US relying heavily on Chinese imports for certain products, such as baby strollers and toys, consumers may soon face significant price increases, and industries across the supply chain are likely to be affected.

The escalation of the trade tension between the US and China has far-reaching implications for American consumers. As the tariffs take effect, numerous products imported from China are expected to experience significant price hikes, with baby strollers sold in the US market likely to see a minimum price increase of 50%. Moreover, over 70% of imported toys come from China, and the impending price surge will undoubtedly affect American consumers. The imposition of a 10% tariff on Chinese goods, coupled with the cancellation of the small package tax exemption, has resulted in a substantial increase in costs for businesses and consumers alike.

American economists have warned that if the US does not engage in trade with China, store shelves will be left empty. Furthermore, American consumer goods giants such as Pepsi and Procter & Gamble have announced downward revisions to their annual profit forecasts, indicating that consumers will face higher prices. The continuous decline in the US consumer confidence index and the rise in long-term inflation expectations have also raised concerns. The impact of the "tariff stick" has already led to a "consumption pause," with consumers reducing their purchases and even cutting back on essential items like laundry detergent.

In response to the rapidly changing trade policies, cross-border logistics companies are adjusting their strategies, including pricing adjustments and changes in clearance modes. However, the structural problems faced by the US customs, including the lack of preparedness for the large volume of small packages and the unclear taxation system, have hindered the implementation of the new policies. As the trade tensions escalate, the filtering and differentiation among sellers are accelerating, with brand owners and large sellers taking advantage of the situation to expand their market share by optimizing their supply chains, improving their products, and enhancing their tax compliance.

In the face of the uncertain trade environment, sellers are exploring new paths to maintain their competitiveness. By leveraging their strengths in supply chains and production, Chinese companies can still maintain their price advantage even if prices rise. Companies like Temu and SHEIN continue to attract price-sensitive consumers, and the "low-price iron wall" of Chinese goods remains solid. The "tariff storm" may have passed, but its impact on the cross-border e-commerce industry will be long-lasting, and companies must adapt to the changing trade policies and consumer behaviors to remain competitive.