How can Amazon sellers respond to the new global tariffs

With the recent wave of global tariff changes in April 2025, Amazon sellers feel the pinch, especially those sourcing from high-traffic countries like China, Vietnam, and Mexico. Increased import duties are silently eroding profits, disrupting supply chains, and forcing sellers to rethink their strategies.

These new tariffs aren’t just numbers on a chart, they directly impact what you pay for goods, how you price your listings, and how competitive you remain. If your cost-per-unit is rising while your competitors adapt faster, it’s time to act.

In this blog, we’ll break down what’s changing, which countries are most affected, and how traffic from each region correlates with the tariff impact. More importantly, we’ll walk through smart, proactive moves like renegotiating with suppliers, monitoring inventory smarter, and optimizing your pricing that can help you stay profitable in this shifting landscape.

What’s changing: Look at new global tariffs 

In April 2025, the U.S. government introduced big changes to global tariffs that are now affecting Amazon sellers, especially those who import products from countries like China, Mexico, and Canada.

Here’s what’s changed:

• 10% base tariff: A new flat 10% tariff now applies to almost all imports. This means the cost of your products may go up, even before they reach your warehouse.
• Country-specific tariff hikes: Some countries are facing much higher tariffs. For example, goods from China can now have tariffs up to 145%. Vietnam is seeing tariffs around 46%, and India is around 26%. These higher rates make sourcing from these countries more expensive.
• No more duty-free imports: The old rule that allowed you to import items under $800 without paying any duty (called the “de minimis” rule) has been removed for certain countries, especially China. Now, even small shipments may cost more and take longer to clear customs. 

These changes mean sellers need to rethink where and how they source their products. These changes are part of the new “Liberation Day” trade policy and include a flat 10% tariff on nearly all imports, plus extra tariffs depending on the country. 

Here’s a simplified table showing the new tariffs by country. 

Another important change is that the U.S. has removed the old “de minimis” rule for China. This rule used to allow sellers to bring in goods worth under $800 without paying tariffs. But from May 2, 2025, even small shipments from China will face import duties, making low-value sourcing more expensive and complicated.

In this case, Amazon sellers now need to rethink where they source products from, how they price them, and how to stay competitive while keeping costs under control.

How will these affect Amazon sellers?

If you’re sourcing products or raw materials from countries like Canada, Mexico, or China, the recent tariff changes could seriously affect your Amazon business. Here’s how:

#1 Disrupt your supply chains

Tariffs on raw materials like steel and aluminum are driving up manufacturing costs. That means prices for certain finished goods could increase, or supplies may run short. Plus, countries like China, Mexico, and Canada might respond by imposing their own tariffs on U.S. goods. 

If that happens, your suppliers might move their factories, change prices, or delay deliveries leaving you to deal with stock outs or unexpected costs.

#2 Increase competition and pricing pressure 

If your costs go up, raising your prices might seem like the only option. But doing that could drive customers to competitors who aren’t affected by tariffs or who are sourcing from cheaper, untaxed regions. 

At the same time, if other sellers are hit harder than you, this could actually open up new opportunities to win market share especially if you act fast and adapt smarter.

#3 Changes to the $800 duty-free rule (De Minimis)

Previously, you didn’t have to pay duties on shipments valued under $800. That made it easy and affordable for sellers to bring in small batches. But now, that rule is changing particularly for imports from China. 

More shipments, even the smaller ones, will now be taxed. This doesn’t just increase your costs it also means more paperwork and potential delays at customs.

#4 Rise in cost of imported goods

Amazon sellers who buy inventory from these countries, especially China will face higher import costs. For example, a 20% tariff on Chinese goods means sellers will pay more upfront, cutting into profit margins. 

If you’re a private-label seller working with Chinese manufacturers, your overall expenses could go up quite a bit, even before your product is listed.

Smart responses: What sellers should be doing now

1. Re-evaluate your supply chain strategy 

Relying on one country for all your products can put your Amazon business at risk especially when tariffs or supply chain issues hit. While China is still a top choice for low-cost manufacturing, it’s smart to explore other options too.

Countries like Vietnam offer affordable production for electronics, furniture, and textiles. India is great for textiles, leather, and some electronics, with trade agreements that can reduce costs. Taiwan is known for high-quality tech parts and strong quality control.

You can also consider U.S. suppliers. Though more expensive, they avoid tariffs and offer faster delivery and “Made in USA” appeal. Diversifying your supply chain makes your business more flexible and protects your profit margins.

2. Review your pricing  strategy 

When new tariffs are added, the first thing you should do is figure out how they affect your costs. Check your numbers right away using  tools like Finale Inventory, Zonos Landed Cost, or Amazon’s FBA revenue calculator. 

These tools help you see how much more you’re paying now. They also show which products are making less money and need quick changes. Adjust your prices smartly so that it doesn’t raise prices too much at once. Start with small increases (around 3–5%) on products where customers aren’t very price-sensitive. Keep an eye on what your competitors are charging so you stay in the game.

Quick tip: List your products by how much the tariffs have hurt their profit margins. Focus on fixing the ones that lost the most profit first.

3. Negotiate better deals with suppliers 

Talk to your suppliers now, don’t wait. With tariffs increasing your costs, it’s important to start conversations that can ease the pressure.

• First, ask your supplier if they’re willing to share some of the extra cost. If you’ve worked with them for a while, they may be open to helping out to keep your business.
• Next, try changing your shipping terms from EXW to FOB. This shifts some shipping costs and responsibilities back to the supplier.
• Also, ask for more flexible payment terms to help with cash flow. These small steps can bring quick relief while you work on bigger, long-term solutions.

4. Monitor your inventory 

With new tariffs causing delays and higher costs, smart inventory planning is more important than ever. You can also use  tools to track how fast your products sell and adjust your reorder points. This helps you avoid over-ordering expensive stock or running out when demand is high.

For your top-selling products, consider ordering in bulk now if they’re already in the U.S. to delay the financial hit of future tariffs. Also, check if any shipments are on the way and will be taxed under the new rates. Planning ahead can help you manage your cash flow better and avoid surprise costs.

5. Track tariff updates 

Tariff rules can change fast, and staying updated can help you avoid surprises. Start by subscribing to trade news sites and official sources like the U.S. Trade Representative and the International Trade Administration for real-time updates. 

You can join Amazon seller forums and Facebook groups to learn how others are handling tariff changes. It also helps to build a relationship with a customs broker or trade consultant; they can alert you to changes that may affect your products. 

Check if your business qualifies for any government relief programs or tariff exemptions. These can help lower your costs. Also, set up Google Alerts using your product category and the word “tariffs.” This way, you’ll get updates directly in your inbox whenever there’s news that could affect you.

6. Improve your Amazon listings 

If you can’t absorb all the new tariff costs, the next best move is to increase your sales volume and conversion rate. This way, you can protect your profit margins without raising prices too much and losing customers.

Start by improving your product listings or else you can hire experts for  your Amazon seller account management. You can use high-quality photos and videos to highlight your product’s value. Make sure your titles and descriptions include strong keywords that attract ready-to-buy shoppers. Show what makes your product better than cheaper options. 

Test different images, bullet points, and wording to see what works best. You can also add a comparison chart to help customers see why your product is worth the price. Small changes here can make a big difference.

Ready to turn tariff trouble into a smart selling strategy?
The new tariffs introduced in April 2025 have made it harder for Amazon sellers to keep costs low and profits high. Prices are going up, supply chains are changing, and sellers need to act fast to stay competitive. But with the right steps like finding new suppliers, adjusting pricing, improving listings, and staying updated you can still protect your business and grow.

If you’re feeling unsure about what to do next, our Amazon consulting service is here to help. We can guide you through the changes, build a plan that fits your business, and help you stay ahead in a tough market.

Let’s work together to keep your Amazon store strong and profitable!