E-commerce
September 18, 2026
Wondering how the US-China trade war impacts your e-commerce costs?
The tariffs imposed by the United States on Chinese products mechanically increase your purchasing costs, whether you are a direct importer or a seller on a marketplace. Understanding these mechanisms is essential to protect your margins and adjust your pricing strategy.
The challenge is twofold: absorb the increase or pass it on to your customers, without losing competitiveness. The complexity comes from the supply chain, which is often dependent on Chinese components, even for products assembled elsewhere.
So, how does the US-China trade war impact your e-commerce costs? On the agenda:
Which products are directly affected by the tariffs?
How do the cost increases reflect on your selling prices?
What alternatives exist to diversify your sourcing?
How to protect your margins without losing your customers?
What role does an AI agent like Qstomy play in this period of tension?
Let's get started.
Summary
Which products are directly affected by the customs duties?
Since July 2018, the United States has imposed a 25% tax on more than 800 categories of products manufactured in China. This measure affects a wide variety of sectors: electronics, household appliances, electric bicycles, machinery, and spare parts. Finished products are not the only ones affected: components imported for local manufacturing are also taxed.
For an e-commerce merchant, this means that your cost price can increase significantly, even if you do not directly sell Chinese products. A product assembled in the United States or in Europe may contain Chinese parts, the price of which has risen. The supply chain is complex and the effects spread far beyond direct importers alone.
Concretely, if you sell electronic products, accessories, or mobility equipment, you are probably exposed. It is essential to audit your catalog to identify products whose purchasing cost is likely to increase.
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Why does China seem to have the advantage in this trade war?
China mainly imports American raw materials such as soybeans, pork, and cotton. These products are easy to replace from other suppliers, such as Brazil or Australia. In contrast, the United States depends on China for complex manufactured parts that are difficult to source quickly elsewhere.
A telling example: air conditioner manufacturer Carrier indicated that it would take 12 to 18 months to find alternative sources for its Chinese parts. Meanwhile, tariffs apply and costs increase. This asymmetry gives China a strategic advantage in negotiations.
For your e-commerce, this means that cost increases are not temporary. They are long-term, as long as the supply chain is not restructured. Therefore, you must anticipate, not just endure.
How do customs duties affect e-commerce sales in China?
The Chinese e-commerce market is the largest in the world, representing more than half of global online sales. The trade war has a limited impact on imported finished products, as China imports few American consumer goods. Luxury products come from Europe, and infant formula, very popular online, is also of European origin.
On the other hand, media coverage of the conflict has eroded Chinese consumer confidence. Automobile sales, a major import item from the United States, have slowed. Retail sales growth forecasts have been revised downwards, and China is not expected to surpass the United States in total sales before 2021.
For an international merchant, this means that Chinese demand may become less predictable. If you are targeting this market, you need to integrate this risk into your strategy.
What pricing strategy should be adopted in the face of rising costs?
E-commerce merchants have two options: absorb the rising costs or pass them on to selling prices. Absorbing a 25% increase over the long term is not viable for most businesses. Passing it on to prices is often inevitable, but it must be carefully considered.
The example of Rad Power Bikes, an electric bike manufacturer, is instructive. The company first increased its prices by $200, then backpedaled in the face of customer complaints. It absorbed 100% of the tax by optimizing its internal costs: component standardization, process simplification, and better supplier relations.
For your store, this means exploring all avenues of cost reduction before raising your prices. A poorly managed increase can cause you to lose customers to more agile competitors.
How to optimize your internal costs to absorb the increases?
The example of Rad Power Bikes shows that it is possible to reduce internal costs to offset customs duties. Standardizing components across all models makes it possible to negotiate better supplier rates. Simplifying internal processes reduces waste and improves efficiency.
For your e-commerce, this could involve redesigning your product range, reducing the number of references to concentrate your volumes. It could also involve renegotiating your supplier contracts, highlighting your purchasing volume.
Another option is optimizing your logistics: reducing packaging, transport, or storage costs can free up margin. Every saving made gives you more flexibility on your prices.
What are the consequences for US imports?
The data shows a 12.5% decrease in US imports from China. China has lost its position as the top US trading partner, falling to third place. US soybean exports to China are expected to drop by two-thirds compared to the previous year.
This drop in imports has a direct impact on merchants who relied on Chinese suppliers. Some are looking for alternatives, but the transition is slow. Production infrastructure in other countries like Vietnam or Malaysia is not yet on par with China's.
For your e-commerce business, this means that supplier diversification is a fundamental trend, not just a simple reaction to the crisis. You must anticipate this transition so you do not find yourself without a reliable source of supply.
Which countries can replace China as a source of supply?
American manufacturers are turning to countries like Vietnam and Malaysia, which are becoming more business-friendly. However, their infrastructure is not yet comparable to China's. The transition is gradual and carries risks regarding quality and delays.
For an e-commerce merchant, this means carefully evaluating new suppliers. Geographical proximity, shipping costs, and reliability are essential criteria. A cheaper but less reliable supplier can cost you more in delays and returns.
Diversification is a prudent strategy, but it must be planned. Test new suppliers on small quantities before committing. Maintain a relationship with your current Chinese suppliers, in case the situation changes.
What is the impact on Amazon sellers?
A survey conducted among Amazon sellers shows that 72% of them have experienced an increase in their unit cost of at least 17% since the start of the trade war. This significant increase jeopardizes the profitability of many small sellers.
Some analysts predict that US merchants could go out of business if they can no longer make a profit on the marketplace. Amazon could then replace them with sellers based in China, who benefit from a tax advantage on small packages.
For your store, this means that competition on marketplaces may stiffen. Chinese sellers, with lower costs, can slash prices. You must differentiate your offer through quality, service or brand identity to avoid entering a price war.
Why do small Chinese parcels benefit from a tax advantage?
Packages from China with a value below a certain threshold pass through customs duty-free. US importers, on the other hand, must pay duties on their bulk shipments. This asymmetry creates a significant distortion of competition.
For an e-commerce merchant, this means that your Chinese competitors can offer lower prices, even when shipping costs are included. This advantage is reinforced by the trade war, which penalizes traditional importers.
It is important to understand these mechanisms in order to adjust your positioning. If you sell products similar to those of Chinese sellers, you must justify your price difference with perceived added value: quality, warranty, customer service, fast delivery.
How does the trade war affect other economies?
More than 40% of the value added of Chinese exports comes from external partners like Japan, South Korea, Singapore, and Taiwan. If Chinese production slows down, these economies will also be affected. The trade war therefore has global repercussions.
For your e-commerce, this means that supply chain disruptions can come from multiple countries, not just China. A component manufactured in Japan, assembled in China, and sold in the United States can see its cost increase at each step.
It is essential to map your entire supply chain, not just your direct suppliers. Identify points of vulnerability and possible alternatives. This global vision will allow you to react faster in the event of a disruption.
How does Qstomy help manage costs and customer relations during times of tension?
Qstomy, the Shopify AI agent, helps you preserve your profitability and customer satisfaction, even when your costs rise. In the event of price increases, the agent guides your customers toward relevant alternatives, such as substitute products or pre-order options, rather than letting them leave.
Qstomy tracks packages and manages order status inquiries, reducing customer service tickets related to customer anxiety. It can also proactively inform about extended delivery times, a frequent consequence of logistical disruptions. The agent increases the average cart value through recommendations and cross-selling, partially offsetting rising purchasing costs.
By automating these tasks, Qstomy frees up time for you to focus on strategy: renegotiating with your suppliers, diversifying your sources, and optimizing your margins. The agent becomes an ally to help you through this challenging period.
What checklist to adapt your e-commerce to the trade war?
Here is a checklist to help you navigate this tight economic context.
In brief
Audit your catalog to identify products exposed to customs duties.
Explore all internal cost reduction options before raising your prices.
Diversify your sourcing to reduce your dependence on China.
Monitor your margins and adjust your prices gradually, explaining the reasons to your customers.
Use an AI agent like Qstomy to automate customer service and increase the average basket value.
FAQ
Should I raise my prices immediately? No, explore internal cost reductions first. If an increase is inevitable, do it gradually and communicate clearly.
How do I explain price increases to my customers? Be transparent about external causes, such as customs duties. Highlight quality and service to justify the difference.
Can Qstomy help me handle price complaints? Yes, the agent can answer pricing questions, suggest alternatives, and direct to substitute products, thereby reducing friction.
To go further: Training an e-commerce chatbot with Shopify: using the right data without creating wrong answers - Qstomy, E-commerce marketing and advertising: what are the differences? - Qstomy, Why does an e-commerce business fail within the first 12 months? - Qstomy, E-commerce SEO strategy for category pages - Qstomy, How to integrate Shopify with Amazon for products, inventory, and reviews? - Qstomy, What is Google Shopping for e-commerce? Definition, feed, and benefits for a store - Qstomy, Why choose Shopify for your e-commerce? - Qstomy.
Enzo
September 18, 2026
