US President Donald Trump signs trade sanctions against China on March 22, 2018, in the Diplomatic ... [ ] Reception Room of the White House in Washington, DC, on March 22, 2018. Trump will impose tariffs on about $50 billion in Chinese goods imports to retaliate against the alleged theft of American intellectual property, White House officials said Thursday. / AFP PHOTO / Mandel NGAN (Photo credit should read MANDEL NGAN/AFP via Getty Images)

Amazon is facing an unprecedented balancing act - trying to compete with Chinese marketplaces on price while simultaneously keeping its marketplace an attractive place to do business for its U.S. suppliers. Now, Donald Trump's proposed tariffs of up to 60% on Chinese imports threaten to make this juggling act impossible.

The retail giant's recent moves reflect this tension. Earlier this month, Amazon launched "Haul," a new shopping experience targeting price-conscious consumers with items under $20. This direct response to competitors like Temu came alongside an unusual decision to freeze seller fees for 2025.

"Amazon is trying to woo sellers and consumers at the same time which is not how Amazon's flywheel has traditionally operated," notes Josh Clarkson, a digital commerce consultant. "This is unlikely to work and I anticipate within 12 months one of the above will no longer be as it is today."

BANGKOK, THAILAND - 2018/05/31: In this photo illustration, the Amazon application seen displayed ... [ ] via the Google Play Store on an Android Sony smartphone. (Photo Illustration by Guillaume Payen/SOPA Images/LightRocket via Getty Images)

At the heart of Amazon's dilemma lies a regulatory framework that could amplify, rather than reduce, Chinese platforms' advantages. The $800 de minimis rule allows direct-to-consumer platforms........

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