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Will China-US Trade War Affect Dropshipping Business or International E-commerce?

US President Donald Trump has imposed a tariff hike from 10 to 25 percent on 200 billion U.S. dollars worth of Chinese imports.

A fresh report from the a firm said that the tariff costs will finally shift to American companies and families. That’s because Chinese exporters haven’t lowered their prices to be more competitive in the US market. The report showed that upgraded trade frictions may lead to a 0.4 percent decline in the US GDP. 

Meanwhile, China is raising tariffs on more than 5,000 US products, and some will be tariffed at 25 percent up from 10 percent to respond to US moves. 

We have to admit that tit-for-tat trade war between China and US will more or less affect dropshipping business or international e-commerce. But you don’t have to be too worried. Why?

We can see from the chart that China could shift its imports from the US to purchases from other markets relatively more easily than the US administration pushing businesses to other alternative countries for outsourcing or imports while US consumers are strongly rely on China’s import products.

1.Tariff threshold

With the outbreak of China-US trade war, tariff is always the most concerning aspect for dropshippers and international customers.

Normally, packages priced lower than $200 are exempt from duty. As dropshipping business and international e-commerce platforms, the majority of the Chinese products sold to US consumers is well below that threshold, so they won’t be affected by the current tariffs.

2. Reasonable price

A growing number of the top sellers in Americans’ favorite e-commerce marketplaces are originating from Chinese-based operations. These Chinese sellers have been able to offer large volumes of low-priced products on some of the leading internet retail sites like Shopify, Amazon, eBay, and AliExpress. With these new tariffs, the product price (including the shipping fee) are still much cheaper than that of US domestic products.

3. Affordable shipping cost

Even with these new tariffs, a Chinese seller can typically sell a product directly from a local Chinese manufacturer to an American consumer at a lower cost than an American seller can domestically. Moreover, the cost of ePacket shipment from China to a US residential customer is dramatically cheaper than the US local shipping options for the same package.

4. CJ’s advantages during this priod

For CJ Dropshipping, we are effectively building two warehouses in the US. It seems the trade war exerts no affect on consumer goods, therefore without the need to pay any import duties or other taxes. Besides, the per price in CJ Dropsshipping are relatively cheaper than other e-commerce platforms, which is very far for the tariff threshold. The transportation we adopt are airlines, so we can avoid the delay of marine transportation.

Compared with other e-commerce platforms, many US consumers choose CJ Dropshipping as their supplier because they have considerate service and they offer products with high quality and reasonable price.

Between trade wars, revised e-commerce rules, and even online marketplace policy shifts, many dropshippers and e-commerce businessman are worried about their business, which is unnecessary.

In fact, Dropshipping business or international e-commerce still remain a profitable revenue for the promising future, you just need the right partner to release your business potential. CJ Dropshipping will escort your business! Just contact us directly to see how our platform can optimize your e-commerce business and ensure that you are always prepared for different shifts and changes!

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