Investing.com-- Chinese companies selling products on Amazon (NASDAQ: AMZN ) are considering price hikes or exiting the U.S. market entirely as President Donald Trump’s latest tariff hike delivered an "unprecedented blow," Reuters reported on Thursday citing the head of China’s largest e-commerce association.

Trump announced on Wednesday that tariffs on Chinese imports would rise to 125%, up from the current 104%, deepening tensions between the world’s two largest economies.

Wang Xin, head of the Shenzhen Cross-Border E-Commerce Association, told Reuters that the tariff hikes were not just about increased taxes, they are pushing the entire cost structure beyond manageable levels. The association represents over 3,000 Chinese Amazon merchants.

She told Reuters that surviving in the U.S. market under such conditions will be extremely difficult for most sellers.

Some sellers plan to raise U.S. prices, while others seek new markets. The new tariffs are expected to hit China’s small manufacturers hardest, potentially worsening unemployment in the sector, according to the Reuters report.