In 2024–2025, the U.S. government announced another round of increased import tariffs on a range of Chinese goods. These new restrictions have become a serious challenge for online sellers, particularly those who import products from China and sell them on Amazon. Rising tariffs directly affect product costs, business profitability, and market competitiveness.
So what exactly has changed, who is affected, and what steps should sellers take to stay afloat? Let’s break it down.
Which Products Are Affected by the New Tariffs
Categories subject to new or increased tariffs include:
- Electric vehicles (tariff raised to 100%);
- Lithium batteries and power cells;
- Microchips and electronic components;
- Solar panels, medical equipment;
- Steel and aluminum products;
- Certain household appliances, gadgets, and tools.
These changes are intended to reduce U.S. technological dependence on China and to encourage domestic production. However, for small and medium-sized businesses, especially Amazon sellers, this introduces additional financial hurdles.
Who Actually Pays the Tariff
Despite common belief, it’s not the Chinese manufacturer who pays the tariff. It’s the American importer—the company or entrepreneur bringing goods into the U.S.
That means Amazon sellers:
- Pay the tariff upon importing the product;
- Are forced to either increase prices or reduce profit margins;
- Often reconsider sourcing strategies or abandon certain product categories.
What Amazon Sellers Should Do: Practical Tips
1. Check Whether Your Product Is Affected
First, determine whether your products are subject to the new tariffs. You can do this by:
- Visiting the official USTR (U.S. Trade Representative) website;
- Consulting with a customs broker;
- Checking your product’s HTS code (Harmonized Tariff Schedule).
2. Recalculate Costs and Margins
If tariffs have gone up:
- Update your cost breakdown;
- Analyze whether the product still yields enough profit;
- Consider raising your retail price or reducing overhead.
3. Look for Alternatives to China
Many Amazon sellers are now turning to suppliers in:
- Vietnam;
- India;
- Mexico;
- Turkey;
- South Korea.
This process isn’t always quick, but it reduces long-term risk.
4. Use Third-Country Assembly
Some businesses are adopting a “China +1” strategy:
- Components are made in China;
- Final assembly happens in another country (e.g., Mexico or Malaysia);
- The country of origin on documents changes, resulting in different tariffs.
5. Optimize Your Logistics
If avoiding Chinese sourcing is not feasible, try minimizing other costs:
- Consolidate shipments;
- Switch to ocean freight instead of air;
- Work with experienced logistics providers who can help reduce customs risks.
6. Sell Higher-Margin Products
In today’s environment, sellers who succeed are those whose products:
- Allow tariffs to be factored into the final price;
- Cater to the premium segment;
- Face less price-based competition.
How We Can Help
Our team specializes in full-cycle support for businesses importing from China to the U.S.:
- Tariff checks for specific products;
- Help finding alternative suppliers;
- Consulting on import documentation and optimization;
- Support with Amazon (FBA/FBM) deliveries;
- Legal and logistics assistance.
Conclusion
The new tariffs aren’t the end — they’re the start of a new chapter for e-commerce entrepreneurs. While the rules are changing, there are always ways to adapt. The key is to react quickly, do the math, and make smart strategic decisions.
If you work with Chinese suppliers and sell on Amazon, now is the time to review and future-proof your business model. Success will belong to those who adapt fastest to the new rules of the game.
