In this podcast episode, host Steve Chou examines the potential effects of President Trump's proposed tariffs on e-commerce businesses, especially those selling products from China. He discusses the possibility of a 60% tariff on Chinese goods but points out that experts believe the actual price increase for consumers would be much lower—about 1%. Drawing from his own experiences with past tariffs, Chou explains how the retail markup and competition on platforms like Amazon could lead sellers to absorb some of these additional costs instead of passing them entirely onto consumers. He concludes that while tariffs may pose certain challenges, the lower corporate tax rates suggested by Trump could help mitigate their impact. He also recommends that Amazon FBA sellers consider proactive ordering to navigate these changes effectively.
