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Trump Tariffs 2025: How It Affects Amazon Sellers

Tariffs, restock limits, and sourcing shake-ups here's what Amazon sellers must do now.

FBA trump tariffs

Overview

The U.S & China trade war has escalated in 2025, with President Trump imposing a massive 104% tariff on Chinese imports. But following negotiations, this rate dropped to 30% for a 90 day window starting May 14, 2025. Meanwhile, China reduced its retaliatory tariffs from 125% to 10%. While these changes offer short-term relief, sourcing and pricing strategies will need rapid adjustment.

This blog will unpack what these tariff shifts mean for FBA sellers, how Amazon itself is responding, and how to take immediate action to protect your business.

What Are the 2025 Trump Tariffs, and Who Pays What?

Tariffs are import taxes that increase the cost of goods coming into the U.S. Sellers especially private label and wholesale businesses must now account for these duties as part of their COGS. That means tighter margins, fewer SKU opportunities, and greater pricing volatility.

Key Terms Sellers Need to Know:

  • HTS Codes: Define what duty rate your product is taxed under.
  • De Minimis Threshold: Normally $800, but voided for China imports.
  • Section 301 Duties: U.S. Trade Representative tariffs for unfair practices.

How Tariffs Drive Amazon Prices Up

As the cost of importing increases, sellers face three choices:

  1. Raise prices and lose conversions
  2. Eat the cost and lose margin
  3. Rework supply chain strategy

Sellers are already seeing cost hikes across fast-moving categories like apparel, kitchenware, and toys. If you haven’t updated your pricing model, now is the time.

What Sellers Can Do Now

1. Strengthen Your Supply Chain

  • Explore sourcing in India, Vietnam, or Mexico.
  • Build U.S.-based and near-shore supplier relationships.
  • Simplify product features to reduce HTS duty brackets.

2. Optimise for Q4 and Prime Day

  • Offer Lightning Deals on tariff-hit SKUs.
  • Use coupons and promos to increase sell-through.
  • Ship smaller, more frequent batches to dodge restock caps.

3. Explore Alternative Models

  • Try Online or Retail Arbitrage to avoid import logistics.
  • Keep an eye on price shifts at U.S. retailers to protect arbitrage margins.

Final Thoughts

Tariffs are here, and they’re not going away anytime soon. Sellers who adapt early by auditing COGS, automating pricing, and diversifying sourcing will survive the storm. Those who don’t risk margin losses, missed restocks, and policy violations. The 2025 marketplace belongs to those who prepare.