US-China tariffs are pushing Amazon FBA sellers toward bankruptcy while Chinese factories idle. Suppliers are committing fraud by underreporting costs and falsely labeling products as Vietnamese-made to dodge duties. The speaker expects tariff chaos to dominate 2025 with no resolution in sight.
This whole tariff situation has been such a shit show for both the US and for China. Because on the US side, you have people that have not shipped out inventory from China because they can't afford this new tariff. So that means in a few months from now, they're gonna have to declare bankruptcy or basically operate at a loss. And what does that mean? A lot of unemployment, not being able to stimulate the economy, not being able to go ahead and pay for certain things in the US. So now you have, you know, people that are gonna lose everything because of these tariffs if there's no agreement in the short term. And you also have people in China that, you know, are not working right now because people aren't going ahead and basically producing more goods. Because a lot of US sellers, especially on Amazon, are no longer going ahead and starting production because they don't know as far as what these tariffs are gonna mean. They're starting to look for different types of countries to manufacture their goods. And the thing is that like any other country can get slapped with these tariffs as well. So there's basically a lot of unknown. But with a lot of unknown, there's so much fraud taking place, which puts people at even more risk. Right now I've been reading articles as far as a lot of Chinese sellers, which they rely heavily on selling their products on Amazon US. Like I want to say 60 to 70% of all products sold on Amazon are from Chinese sellers. And how are they going ahead and conducting fraud? Well, one of those things that they're going ahead and doing is they're underreporting how much it really costs to make their item. You see, I read an article that, you know, some Chinese sellers are paying, um, or selling an item for $200 on Amazon, but on their invoices they're saying that they're able to go ahead and get this product for $5, which is impossible to do, right? If anything, the most you can sell that product for I would say is thirty bucks, thirty-five bucks, even forty bucks. But but you went ahead and saying that it costs you five dollars to make an item and you're selling it for two hundred dollars to go ahead and to the end consumer is basically bullshit, right? But there's no checks and balances to check this to confirm this. So I mean, why wouldn't they do this, right? Another thing that they're going ahead and doing is that instead of actually having it made in China. They're literally just slapping a logo saying this product is made in Vietnam or other countries that aren't affected by these tariffs, which again is fraud in itself. But there's no one to check these balances or like, you know, confirm that this— all this stuff is true. So right now it's basically going on, right? And this is what people are going ahead and doing, right? Because the thing is that there is nobody to go ahead and confirm this. But so we're losing a bunch of jobs here in the US from people that, you know, can't afford the new production run. And you still have Chinese suppliers, the Chinese actual owners, shipping the products into the United States, committing fraud, and still making the same amount of profit. So I don't know how this ends. I just know that 2025 is going to be all about these whole tariffs, and I really don't think there's going to be agreement anytime soon.
