Topic

Amazon Profit

How US Tariffs Impact Amazon Sellers: What You Need to Know in 2025

US tariffs
US tariffs

If you import products into the US to sell on Amazon, tariffs can quietly eat into your margins—sometimes more than PPC ever will. And with ongoing changes to trade policies and Section 301 tariffs, it’s crucial to understand how these fees affect your business in 2025.


This guide breaks down how US tariffs work, how to check if your product is affected, and what you can do about it.


What are US tariffs and why do they matter to Amazon sellers?


A tariff is a tax imposed on imported goods. When you bring products into the US from abroad—whether via sea, air, or ground—you may need to pay an import duty depending on what you’re importing and where it’s coming from.


For Amazon sellers, this matters because:

  • Tariffs directly increase your landed cost

  • You may not notice them until your profit margin disappears

  • They apply even if you're using FBA (Amazon won't cover them)


Countries like China, Vietnam, and India are popular sourcing hubs, but many goods from these regions are subject to US tariffs—especially under current trade tensions.


Which products are affected by tariffs in 2025?


Some of the most commonly affected categories include:

  • Electronics and components

  • Tools and industrial supplies

  • Home and kitchen products

  • Apparel and textiles

  • Toys and baby products


As of 2025, many products from China still fall under Section 301 tariffs, which add an extra 7.5%–25% depending on the HTS code.


👉 You can check your product's tariff rate using the HTS Search Tool.


How tariffs affect your margins and pricing on Amazon


Let’s say you source a product at $4 from China. If the tariff is 15%, you’re now paying $4.60 before shipping. Add another $0.50 in freight, and you’re suddenly at $5.10 landed cost—25% higher than expected.


That higher cost can affect:

  • Your profit margin

  • Your price competitiveness

  • Your ability to scale ads profitably (TACoS goes up)


Tariffs are invisible to customers but very real for sellers. If you’re not adjusting pricing or sourcing accordingly, you could be losing money without realizing it.


How to check your product’s tariff rate before importing


Before placing your next order, make sure you:

  • Identify your product’s HTS code

  • Use the HTS lookup tool to find the exact duty rate

  • Ask your freight forwarder or customs broker for confirmation

  • Consider tools like Flexport, Freightos, or Jungle Scout’s supplier databases for guidance


A 10-minute check can save you thousands later.


Strategies to reduce the impact of tariffs


Here are smart ways Amazon sellers are dealing with tariff pressure in 2025:

  • Source from alternate countries like Mexico, India, or Turkey to avoid US-China tariffs

  • Modify your product materials (e.g., switching from metal to plastic) if one material is tariffed higher

  • Bundle with non-tariff items to shift your HTS classification (consult a customs expert)

  • Negotiate with your supplier to share or offset the tariff cost

  • Adjust ad strategy to focus on higher-margin products


Should you pass on tariff costs to customers?

You have two options:

  • Increase your price to cover the added cost

  • Absorb the cost and take a hit on margins

If you’re in a competitive niche, raising prices might hurt your sales. But if your competitors are doing the same, it could be the only way to stay profitable.


Final tips + How Atlisco can help


Tariffs are now a standard part of selling physical products on Amazon. They’re not going away—but you can work around them with the right strategy.


Key Takeaways:

  • Always check tariff rates before importing

  • Know how they affect your true landed cost and margins

  • Adapt your sourcing and pricing strategy to stay profitable


At Atlisco, we help Amazon sellers scale profitably—even when costs like tariffs go up.

Need help adjusting your ads around changing margins? Let’s talk.

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