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.
What changed with tariffs in 2025?
In 2025, the U.S. introduced significant updates to the way it taxes imported goods. These are additional fees applied to items brought into the country from abroad.
Here’s a breakdown of the changes:
- A flat 10% tariff on most imports: Nearly all products from any country now come with an extra 10% charge at the border. For instance, if you previously paid $5 to bring in a product, the new cost is $5.50. That extra 50 cents is the tariff.
- Much steeper tariffs on specific nations: Certain countries, especially China, are now subject to much higher rates, ranging from 25% to as much as 245%. That means an item that once cost $5 to import from China could now cost $20 or more after tariffs.
- Lowered duty-free thresholds: Previously, shipments (under $800) typically avoided import fees. That exemption has been reduced, meaning even small packages may be taxed.
- Tariffs expanded to cover more products: It’s not just industrial items anymore. Everyday goods like kitchen gadgets, phone accessories, cosmetics, pet gear, and even packaging now face higher import taxes.
How are Amazon sellers impacted?
Rising tariffs directly increase the cost of importing goods, something many Amazon sellers rely on. But it doesn’t stop there. It also affects your pricing strategy, profit margins, sourcing options, inventory levels, logistics, and overall business planning.
1. Import costs are on the rise
Tariffs are added fees on goods brought in from abroad. These new rules have made it more difficult to calculate total landed costs and preserve healthy profit margins, especially for sellers dependent on imports.
For many Amazon sellers, 2025 triggered a sharp increase in what it costs to bring products into the U.S., regardless of order size or shipping method. As a result, having dependable suppliers and a flexible supply chain has become critical to staying competitive.
2. Profit margins are getting squeezed
Even a slight bump in landed costs can quietly eat into your profits, often going unnoticed until payouts start falling short. If you’re seeing steady sales but shrinking profits, it may be time to review your sourcing or pricing strategy.
Sellers who’ve already expanded their supplier options—or shifted to more stable countries like India—are in a better spot to maintain margins and respond to changes without sacrificing quality.
3. Raising prices isn’t simple
This is Amazon. You’re part of a competitive marketplace. Raising prices to cover added costs might cost you the Buy Box. If you don’t adjust, those tariffs bite into your profits. And if a competitor isn’t affected or finds a cheaper alternative, you lose ground.
Even small price increases can lower your conversion rate. Tariffs force you to strike a delicate balance between maintaining profit and staying competitive.
4. Restocking gets more complex
With increased import expenses:
- You may reduce the size of your order to limit risk.
- You might hold off on reordering to wait for more clarity.
- Or you overbuy now, trying to outmaneuver policy changes, only to face higher storage costs or stagnant inventory.
This puts a strain on your inventory planning:
- A 90-day cycle could shrink to 60—or stretch to 120 days.
- Cash flow tightens, especially for sellers with limited working capital.
5. More customs red tape and delays
Stricter import laws mean more inspections, more paperwork, and longer clearance times, especially for small shipments that once breezed through. If you relied on simplified imports or duty exemptions, those shortcuts are less reliable now.
Missing or inaccurate documents can now lead to shipment holds or fines, even when using Delivered Duty Paid (DDP) options. Working with experienced, export-ready suppliers is more important than ever. Countries like India, with English-speaking teams and solid export systems, often provide a smoother compliance process.
6. Choosing new suppliers is tough
If you’re importing from China and now facing a 30% tariff, you’re probably asking, “Should I switch to Vietnam or India?”
But it’s not a simple fix. New suppliers need testing. Product specs might shift. Delivery times could be longer. MOQs (minimum order quantities) may increase. You might even need updated packaging or certifications.
So while relocating your sourcing is doable, it comes with costs, learning curves, and time commitments.
7. The competitive landscape is shifting
Everyone importing to the U.S. is impacted by tariffs, but not always to the same degree. Chinese sellers on Amazon are affected too, but they often benefit from lower production costs, direct access to manufacturers, and leaner operations.
So while tariffs hit them as well, they may be better equipped to weather the storm than smaller U.S.-based private label brands. In many cases, it turns into a pricing battle, and if your costs went up while theirs stayed steady, you may struggle to stay competitive.
8. Your product lineup may need a rethink
More sellers are now:
- Steering away from oversized or heavy items (shipping cost hikes increase total landed price)
- Avoiding high-tariff materials like plastic or steel
- Focusing on products that can be made locally or in countries with lower tariff burdens
- Bundling items to boost value per sale (helping absorb tariff costs without raising base prices)
Now, every product idea needs a full landed cost and tariff review before moving to sourcing, making early research more important than ever.
Should You Be Concerned?
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:
- Your suppliers are based in countries like China, Vietnam, or Mexico, now subject to increased tariffs.
- Your profit margins are already slim.
- You haven’t recently evaluated your product costs.
- You’ve yet to adjust your pricing, sourcing, or shipping strategies.
In these scenarios, there’s a risk of diminishing profits without immediate realization. Products that were profitable previously might no longer be so. However, with timely adjustments, these issues can be addressed.
You don’t need to panic if:
- You’ve begun revising your pricing or exploring alternative suppliers.
- You’re actively monitoring costs and profit margins.
- Your business model allows for testing and implementing new strategies.
Many sellers face similar challenges. Those who adapt promptly often maintain their market position, while delays can lead to setbacks.
The Importance of Awareness and Action
Tariffs signify a shift in the business landscape, not necessarily a crisis. To stay ahead:
- Regularly analyze your financial metrics.
- Stay updated on trade developments.
- Be prepared to make swift, informed decisions.
Continuing with previous strategies without adaptation may lead to challenges. Conversely, those who reassess and adjust with the guidance of e-commerce sourcing experts are better positioned for success, even amidst 2025’s evolving trade environment.
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.
Recommended Actions for Amazon Sellers
If you’re selling on Amazon and rely on imported products, it’s crucial to reassess your operations in light of recent tariff changes. Here’s a structured approach:
1. Reevaluate Your Landed Cost
Calculate the total expense of getting a product from your supplier to Amazon’s warehouse, including:
- Product price
- Shipping fees
- Applicable duties and tariffs
- Customs charges
Ensure that new tariffs are factored into this calculation to determine if your current pricing remains profitable.
2. Assess Your Profit Margins
With updated landed costs, determine your profit per unit after accounting for
- Amazon’s fees (FBA fees, referral fees, etc.)
- Advertising expenditures
- Additional costs (storage, returns, packaging)
If margins are too tight or negative, consider adjusting prices or reducing costs.
3. Engage with Your Suppliers
Initiate discussions to explore:
- 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 anticipate such negotiations in 2025. You won’t know until you ask.
4. Investigate Alternative Suppliers
If your current supplier is in a high-tariff region:
- Research suppliers in countries like India, Vietnam, or the Philippines.
- Consider domestic manufacturers for certain products.
Obtain quotes, compare costs, and test product quality before making transitions.
5. Refine Your Pricing Strategy
To counter shrinking margins:
- Implement modest price increases on select products.
- Bundle products to enhance perceived value.
- Offer incentives like free shipping instead of direct price hikes.
Monitor customer responses and adjust accordingly.
6. Utilize Profitability Tracking Tools
Move beyond spreadsheets by leveraging tools that:
- Monitor cost fluctuations.
- Analyze profit by SKU.
- Forecast inventory needs and cash flow.
- Determine restocking requirements based on the updated costs.
Real-time data facilitates quicker, more informed decisions.
7. Stay Informed Without Overwhelm
While you don’t need to be a trade expert, it’s beneficial to:
- Stay abreast of new tariff implementations.
- Be aware of any exemptions or policy changes.
- Understand which countries are affected.
Regular weekly updates can help you anticipate and adapt to changes effectively.
Where Can You Source Products Without Heavy Tariffs?
If you’ve been relying on Chinese suppliers and are feeling the pressure from the 2025 tariff hikes, you’re likely wondering, “What are my other options?”
The good news? There are several countries that offer quality products and far lower—sometimes zero—tariff rates when exporting to the U.S.
India has emerged as one of the most reliable alternatives for Amazon sellers. Beyond the tariff advantage, it offers strong manufacturing capabilities, flexible minimum order quantities, and generally smoother communication. It excels in producing textiles, kitchen items, home decor, metal crafts, and wood-based products—all of which are popular categories on Amazon.
Vietnam and Thailand are solid choices for sourcing clothing, small electronics, and furniture. They’re well-equipped to handle large orders and maintain decent production timelines.
If you’re looking for duty-free options, Mexico is especially appealing thanks to the USMCA agreement. Its close proximity to the U.S. also means reduced shipping time and costs—big wins for Amazon sellers needing quick restocks.
Other countries like Indonesia and Bangladesh are also worth a look. They offer lower tariff rates and specialize in handmade goods, apparel, and natural material products.
In summary, if you want to keep your margins healthy and minimize tariff-related risks, consider shifting your sourcing strategy. India, Vietnam, and Mexico offer compelling advantages, and India, in particular, stands out for its export-ready product range, tariff benefits, and alignment with Amazon’s market demands.
Why India Is an Attractive Sourcing Choice
Reason 1. Predictable Trade Environment
India continues to be a reliable sourcing partner without the unpredictability seen in U.S.–China trade relations. It offers stable access for U.S. sellers, with no sudden hikes, bans, or policy surprises, making it a safer long-term bet for Amazon sellers building multi-year brand plans.
Reason 2. Expertise in Key Amazon Product Niches
India has built a strong reputation for producing high-quality goods in several Amazon-friendly categories, such as
- Home and kitchen essentials
- Textile items like towels, curtains, and table linens
- Leather wallets, belts, and accessories
- Wooden decor and furniture pieces
- Handcrafted metal products and cookware
- Costume jewelry and fashion accessories
- Personal care tools like combs, tweezers, and brushes
- Yoga gear and wellness items
These categories typically don’t require intricate electronics or heavy plastic use, making them ideal for Indian manufacturers.
Reason 3. English-speaking ecosystem
Business interactions with Indian suppliers are usually straightforward. English is widely spoken in professional and commercial settings, which helps avoid miscommunication and ensures smoother negotiation and documentation processes.
Smaller minimum order quantities (MOQs) and flexible suppliers
Many Indian producers are open to working with smaller minimum order quantities (MOQs), particularly when it comes to artisanal or semi-handcrafted products—something that’s not as common with larger Chinese factories.
What You Can Do Today
- Search for Indian suppliers: Platforms like IndiaMART, TradeIndia, and ExportersIndia are great places to start. You can also explore trade shows such as the IHGF Delhi Fair or Indian sections of global fairs.
- Consult your logistics partner: Freight forwarders often have established networks and may connect you to reputable manufacturers or sourcing contacts in India. Ask them if they can help you connect.
- Hire a local sourcing specialist. If you’re not comfortable navigating the process solo, consider working with a trusted sourcing agent who understands the Indian market and can support everything from sampling to shipping logistics.
- Evaluate overall costs: Don’t just compare product prices—analyze the full landed cost, including shipping rates, customs fees, lead times, and tariffs. This gives a clearer picture of potential savings and profit margins when switching from China to India.
Frequently Asked Questions from Sellers
1. Do tariffs affect products I already have in FBA?
No. Tariffs apply only to items imported after the new regulations come into effect. Existing inventory in Amazon’s fulfillment centers is exempt.
2. I source from China—should I switch suppliers right away?
Not necessarily. First, calculate how much the new tariff adds to your landed cost. Then, ask your current supplier if they can reduce pricing or offer fulfillment through a different country. Only consider changing suppliers if the numbers still don’t work in your favor.
3. If I fulfill orders myself (FBM) directly from the factory, do I still pay tariffs?
Yes. Tariffs are based on where goods are imported from, not how you fulfill orders. Whether you use FBA or FBM, the import point matters.
4. Can I avoid tariffs by sending smaller packages?
Previously, some sellers avoided duties using the de minimis rule (under $800 per shipment). However, recent changes have limited or removed that benefit for certain countries. It’s not a reliable solution anymore.
5. How do Chinese sellers keep their Amazon prices so low? Aren’t they affected too?
Yes, they are. But many Chinese sellers:
- Get better bulk rates from factories
- Operate on razor-thin profit margins.
- Accept short-term losses to stay visible on the platform.
It’s tough to compete, but by sourcing smart, managing pricing, and standing out in your niche, it’s still possible.
6. Can my business write off tariffs as a tax deduction?
Yes. Tariffs are part of your Cost of Goods Sold (COGS) and are tax-deductible. For exact advice based on your business, consult your CPA or tax expert.
7. How do I find out if my products are impacted by the tariff changes?
Check the HTS (Harmonized Tariff Schedule) code for each product. That code determines the applicable duty. Your customs broker or freight forwarder can help identify and interpret the tariff details for your SKUs.
8. When should I adjust my prices after a tariff update?
As soon as you verify an increase in costs. Don’t delay—many experienced sellers begin adjusting pricing within one to two weeks of a new tariff being announced to maintain margins.
Final Takeaway
Tariffs can significantly affect your sourcing costs, pricing strategy, and bottom line. If you’re selling on Amazon and haven’t reviewed your numbers, product categories, or supply chain yet, this is the moment to act.
Sellers who proactively review their cost structures, consider alternative sourcing regions like India or Mexico, and make strategic adjustments will stay competitive. Those who delay may face tighter margins and slower growth.
If navigating all of this feels like a lot, you’re not alone. This is where a professional sourcing consultant or team can provide real value by guiding your sourcing shifts, reviewing costs, and helping you stay ahead.
Whether you’re just starting out or running an established brand, how you respond now could shape your success for the long term. Tariffs aren’t vanishing, but smart planning can help you power through.
