How the 2025 Tariff Changes Affect Amazon Sellers

If you’re an Amazon seller, you’ve probably heard a lot of noise about new tariffs in 2025. Some say it’s a disaster. Others say it’s not a big deal. Either way, things have changed—and they affect your business.

In this blog, our Amazon business experts have explained what these tariffs are, what changed in 2025, and how they impact Amazon sellers like you. We’ll keep it simple, no confusing terms, no guessing games. Just straight answers to the questions every seller has right now.

What happened with tariffs in 2025?

In 2025, the U.S. government made some big changes to how it taxes imported products. These are extra charges added to goods that come into the country from somewhere else.

Here’s what changed:

• A new 10% tariff on almost everything: No matter which country you import from, most products now have an extra 10% cost added when they enter the U.S. Example: If your product used to cost $5 to import, it now costs $5.50. That extra 50 cents is the tariff.

• Extra-high tariffs on some countries: Certain countries, especially China, are hit much harder. Imports from China now face an extra 25% to 145% in tariffs. That means a $5 product from China might now cost $10 or more just to get it into the U.S.

• Duty-free limits reduced: Earlier, small shipments (under $800) didn’t have to pay import duty. That rule is now tighter, so even small packages may be taxed.

• More items now have tariffs: It’s not just electronics or steel anymore. Everyday products like kitchen tools, phone cases, beauty items, pet supplies—even packaging—are being taxed more.

How do tariffs affect Amazon sellers?

When tariffs go up, your cost of doing business goes up—especially if you import products. But the effects don’t stop at cost. It changes your pricing, margins, supply chain, inventory, shipping, competition, and even your product strategy.

1. Product cost goes up

Tariffs are charges on imports. That means every unit you bring into the country costs more. Example: If you import a product from China at $5 and there’s a 25% tariff, the cost becomes $6.25 before shipping and other fees.

If you're importing from countries like China, Mexico, or Vietnam, there are new or higher tariffs in 2025 too—some up to 25%+. This increase applies whether you’re shipping full containers or small boxes. The cost hike is immediate and affects your landed cost.

2. Your profit margin shrinks

Let’s say you sold that $5 product for $15 and made $4 in profit after all Amazon fees. With tariffs raising your cost by $1.25, your profit drops to $2.75.

Now imagine that across thousands of units—you’re losing thousands in margin unless you adjust something. For many sellers, this is the first warning sign that they need to change sourcing or pricing.

3. You can’t raise prices easily

This is Amazon. You don’t control the whole market. If you raise your price to protect your profit, you risk losing the Buy Box. If you don’t raise it, your profits get eaten by tariffs. If competitors find cheaper suppliers or aren't hit by the same tariffs, you lose market share.

Even a $1 price difference can drop your conversion rate on Amazon. Tariffs force you to walk a very thin line on pricing.

4. Inventory and restock planning becomes complicated

Because costs are higher:

• You might reduce your next shipment to manage risk.

• You may delay reordering to “wait and see.”

• Or you over-order now to beat the next tariff hike—and end up paying more for storage.

All of this creates pressure on your inventory cycle:

• What used to be a 90-day restock plan might now be 60 or 120.

• Cash flow gets tight, especially for small sellers managing limited capital.

5. You face more paperwork and possible customs delays

New tariff rules = more customs declarations, stricter checks, and possibly slower shipping. If you were relying on the de minimis rule (duty-free for shipments under $800), that’s changing in some cases.

Smaller shipments may now require duty payment. If your paperwork isn’t accurate, it can delay your shipment or lead to fines. This affects sellers using DDP (Delivered Duty Paid) services too—costs go up even if the freight forwarder handles the process.

6. Supplier decisions get harder

Let’s say you currently import from China. If the tariff is now 30%, you’re probably thinking: “Should I find a supplier in Vietnam or India?”

That’s not easy. New suppliers take time to test. Product quality might change. Lead times may be different. MOQs (minimum order quantities) could be higher. You may also need to reprint packaging, change labeling, or even get new product certifications.

In short: Switching suppliers is possible, but it takes time, money, and patience.

7. Competition changes—especially with Chinese sellers

Tariffs affect everyone—but not always equally. Chinese sellers on Amazon USA are affected too. They also have to pay tariffs. But they often have advantages: lower production costs, closer factory relationships, and thinner margins.

So while they feel the impact, they might survive better than small or medium U.S.-based private label sellers. It becomes a price war—and if your cost went up and theirs stayed flat (or went up less), you're in a tougher spot.

8. You may need to rethink your product line

Some sellers are now:

• Avoiding heavy or bulky products (higher shipping = higher landed cost)

• Avoiding materials like steel or plastic (more likely to get hit with tariffs)

• Choosing new products that can be sourced locally or from low-tariff countries

• Bundling products to raise value per unit (helps cover tariff cost without raising price too much)

Every product idea now needs a landed cost + tariff check before it even makes it to the sourcing stage.

Should you be worried?

If you’re importing products to sell on Amazon, yes—you should pay attention. But worried? Not if you act early, stay informed, and get in touch with the right product sourcing agent.

Let’s break it down:

You should be concerned if:

• You rely on suppliers in China, Vietnam, Mexico, or other countries now hit by higher tariffs

• Your profit margins were already tight

• You haven’t reviewed your product costs recently

• You haven’t adjusted pricing, sourcing, or shipping strategies

In these cases, you could be losing money without realizing it. A product that was profitable last year might not be anymore. That’s a serious concern—but it’s fixable.

You don’t need to panic if:

• You’ve already started adjusting your pricing or supplier choices

• You’re keeping an eye on costs and margins 

• You have enough flexibility in your business to test new options

Many sellers are in the same boat. The ones who adapt first usually do fine. Those who wait too long are the ones who struggle.

What matters now is awareness and action

Tariffs don’t mean your business is in trouble. They just mean the game has changed. You now have to:

• Look closely at your numbers

• Stay updated on trade news (just the basics, not the drama)

• Make decisions faster than before

Think of it like this: sellers who keep doing the same thing and expect the same results? They’ll probably fall behind. Sellers who review, adapt, adjust, and plan everything with an e-commerce sourcing expert? They’ll be fine—even in 2025.

So, should you be worried? Only if you ignore what’s happening. But if you're willing to adjust your approach—or get help from an experienced Amazon seller consultant—you’re already ahead of half the competition.

What should Amazon sellers do now?

If you’re selling on Amazon and importing products, now is the time to take a close look at your business. Tariffs may have changed your numbers, and you can’t afford to guess anymore. Here’s what you should be doing:

1. Recalculate your landed cost

Landed cost = the total cost to get one unit of your product from your supplier to Amazon’s warehouse. This includes:

• Product price

• Shipping

• Duties and tariffs

• Customs fees

You must include new tariffs in this calculation. If your landed cost has gone up, check if your selling price still gives you profit.

2. Review your profit margins

Now that you know your updated landed cost, calculate your profit per unit after:

• Amazon fees (FBA fees, referral fee, etc.)

• Advertising spend

• Any extra costs (storage, returns, packaging)

If your margin is too low—or worse, negative—you’ll need to either raise your price or find ways to lower your cost.

3. Talk to your supplier

Open a conversation:

• Can they offer you a better price?

• Can they share part of the tariff burden?

• Can they ship from a different country?

• Can they give you better payment terms?

Many suppliers are expecting these talks in 2025. You won’t know until you ask.

4. Explore alternative suppliers

If your current supplier is in a high-tariff country (like China), look at other countries:

• India

• Vietnam

• Philippines

• Or even local U.S. manufacturers (for some product types)

Get quotes, compare landed costs, and test quality before switching.

5. Adjust your pricing strategy

If your margins are shrinking, test small price increases instead of jumping straight to a big hike. Try:

• Raising the price on just 1–2 products

• Bundling products to increase order value

• Offering free shipping instead of lowering the price

Watch how customers respond and adjust based on actual sales data.

6. Use tools to track profitability

Don’t rely on spreadsheets. Use Amazon tools or third-party apps to:

• Track cost changes

• Monitor profit by SKU

• Forecast inventory and cash flow

• Calculate restock needs based on new costs

Knowing your numbers in real time helps you move faster.

7. Stay informed, but don’t get overwhelmed

You don’t need to become a trade expert. But you do need to know:

• If new tariffs are coming

• If any exemptions are announced

• Which countries are affected

Check updates once a week. A few minutes can save you from major surprises.

Where can you get products without high tariffs?

If you’re sourcing from China and feeling the heat from the new 2025 tariffs, you’re probably asking: “Where else can I go?”

Several countries offer competitive products with much lower or no tariffs when exporting to the U.S.

India is one of the strongest options. Most products from India face only a 10% base tariff, without any of the additional trade-war-related hikes that Chinese goods often attract. India is also in talks with the U.S. to reduce tariffs further. It's especially strong in categories like textiles, kitchenware, home goods, metal items, and woodcrafts.

Vietnam and Thailand are good options too, especially for apparel, furniture, and light electronics. Their tariffs usually stay in the 5–15% range, much lower than China’s 25%–100%+ rates.

Mexico is ideal if you want zero tariffs under the USMCA agreement. Plus, shipping is faster and cheaper due to proximity.

Indonesia and Bangladesh also offer lower tariffs and are known for their strong capabilities in crafts, apparel, and natural goods.

In short, if you want to protect your margins, reduce risk, and still get high-quality goods, countries like India, Vietnam, and Mexico are worth serious consideration. Among them, India stands out for its low tariffs, growing export support, and product variety that aligns perfectly with what Amazon customers want.

Why India is a strong option

Reason 1: No extra U.S. tariff burden (yet)

As of April 2025, India is not on the U.S. tariff hit list. You only pay the 10% flat tariff. India is in trade talks with the U.S. India is negotiating to reduce or eliminate tariffs on several U.S.-bound exports. If successful, that would make Indian sourcing even cheaper for U.S. sellers.

Reason 2: Strong manufacturing in key Amazon categories

India is already a major exporter of:

• Home & kitchen products

• Textiles and soft goods (curtains, tablecloths, towels)

• Leather accessories

• Wooden items and furniture

• Metal crafts and utensils

• Jewelry and imitation fashion accessories

• Beauty tools (brushes, tweezers, combs)

• Yoga and wellness products

These categories are popular on Amazon and less dependent on complex electronics or plastics.

Reason 3: English-speaking ecosystem

Communicating with Indian suppliers is easier than with many other countries. Most business is done in English, and documentation is generally smoother.

Reason 4: Smaller MOQs and flexible suppliers

Indian manufacturers are often open to lower minimum order quantities (MOQs) than Chinese factories, especially for handmade or semi-handmade goods.

What you can do right now

• Start browsing Indian suppliers: Use platforms like Indiamart, TradeIndia, and ExportersIndia. Attend trade shows like Canton Fair India Pavilion, and IHGF Delhi Fair, or explore directories from FIEO (Federation of Indian Export Organisations)

• Ask your freight forwarder: They often have partner factories or sourcing agents in India. Ask them if they can help you connect.

• Work with a sourcing agent: If you’re not ready to do it yourself, find a trusted sourcing agent who knows the Indian market. They can help with sampling, negotiation, and shipping.

• Run cost comparisons: Before switching completely, compare the total landed cost (including tariffs, shipping, and lead time) between China and India. Don’t just look at unit cost—look at the full picture.

Common questions sellers are asking

1. Do these tariffs apply to the inventory I already have in FBA?

No. Tariffs only apply to products you import after the new rules take effect. Anything already in FBA is unaffected.

2. My supplier is in China—do I need to stop working with them immediately?

Not necessarily. First, check how much the new tariff adds to your cost. Then ask your supplier if they can lower their price or ship from another country. Only switch if it still doesn’t work after that.

3. What if I ship directly from my supplier to customers (FBM)? Do tariffs still apply?

Yes. Tariffs apply to how products enter the U.S., not how you fulfill orders. Whether you're using FBA or FBM, if you import, the tariff hits you.

4. Can I avoid tariffs by splitting my shipment into smaller boxes?

This used to work under the de minimis rule (shipments under $800 were often duty-free). But now, some countries no longer qualify for that, and the rule is changing. Don’t count on it as a long-term fix.

5. How are Chinese sellers still offering such low prices on Amazon? Aren’t they paying tariffs too?

They are. But many of them:

• Get better pricing from factories

• Have thinner profit margins

May be absorbing losses to stay competitive So yes, it’s tough—but not impossible to compete. You just need to be smarter with your sourcing, pricing, and product positioning.

6. Are tariff costs tax deductible for my Amazon business?

Yes. Tariffs are part of your product cost (COGS), and you can deduct them. Talk to your accountant for details specific to your business.

7. Is there a way to check which of my products are affected by tariffs?

Yes. Every product has an HTS code (Harmonized Tariff Schedule). That code tells you the exact tariff rate. Your freight forwarder or customs broker can help you check this.

8. How fast should I adjust prices after a tariff hike?

As soon as you confirm your costs have gone up. Don’t wait until your margins disappear. Many sellers start adjusting within 7–14 days after a new tariff is announced.

Final thoughts

Tariffs directly impact your product costs, profits, and sourcing decisions. If you’re selling on Amazon and haven’t already adjusted your numbers, suppliers, or pricing, now is the time.

The sellers who act early—by running cost checks, exploring new sourcing countries like India, and reviewing their strategy—will stay profitable. The ones who wait too long might end up stuck with shrinking margins and slower growth.

If this all feels overwhelming, you’re not alone. This is exactly where working with an experienced product sourcing consultant team can make a difference. They can help you:

Whether you're a new seller or scaling a multi-product brand, these decisions matter more now than ever. Tariffs aren’t going away—but with the right approach, they don’t have to slow you down.