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Tariffs are here
Well, the tariffs are here. More than 70 percent of the products that wholesalers and retailers sell on Amazon are produced in China, according to a survey conducted by Jungle Scout and published by the ECDB. So, looks like cost for the majority of sellers are going up substantially. Per WSJ: China will be hit with a new 34% tariff, adding to previous duties, like the 20% tariff Trump imposed over fentanyl. That means the base tariff rate on Chinese imports will be 54%, before adding pre-existing levies. Have you started changing prices yet?
Not talked about much: "Trump on Wednesday signed an executive order eliminating the so-called de minimis provision for low-value parcels from China, effective May 2. Under U.S. tax law, the de minimis provision allows companies to avoid import taxes and customs inspections on international shipments with a retail value of $800 or less."
89 million de minimis packages came in from China in January. So, say the tariffs cuts that flood of packages in half, DHS still has to deal with a tsunami of packages to collect tariffs on which they never had to do before. Are there details on a plan to handle this? If so, please share.
The new de minimis rules may help some USA based sellers whos items are low cost and compete with cheap Chinese goods off of Temu et.al. Seems most of us in the USA can expect long delays on import clearances. Are stock outs therefore looming, and is it another reason to raise prices to conserve what inventory we all have already landed in the USA?
Thoughts?
18 replies
Seller_Sram36TnVt73c
Buy from Russia....Despite their massive trade deficit with the US, they have for some reason escaped the tariffs.
*cough*
Seller_nRFmxiQg4EGrw
Don't forget the effects on things other than your direct sourcing of products. The packing tape that we use comes from China, so that will be going up. Stay-Flat mailers are made in Mexico; not sure what the tariff is there, but they'll be going up. And of course, we'll see another price rise (on top of what we got in Trump's first term) on all cardboard and paper products from Canada, so boxes and packing paper will go up.
Even for those of us not importing anything to sell, the effects will be noticeable.
Seller_LVZcgxAgZ2xBv
Another effect is going to be on consumer confidence. Demand will crater across many sectors of the economy. Millions of people have lost or are about to lose their jobs, or will just close their wallets in anticipation of higher prices. They will ditch Prime accounts, shop less frequently, and reduce cart sizes. It will be even worse in other countries that are highly dependent upon the U.S. market.
Many sellers on this site are going to be in a world of hurt, even if they manufacture locally.
Seller_qMgi7qxvEo7f1
"Trump on Wednesday signed an executive order eliminating the so-called de minimis provision for low-value parcels from China, effective May 2. Under U.S. tax law, the de minimis provision allows companies to avoid import taxes and customs inspections on international shipments with a retail value of $800 or less."
This means Trump killed my family business. End of story. What the hell I'm going to do now?
Seller_xo4Akj7FBBnfC
As a U.S. manufacturer and small business, these tariffs pose a much greater threat to our operations than to the 70% of Amazon sellers who import directly from China.
Why? Because nearly every U.S.-sourced component we use still relies on materials that ultimately originate overseas—whether it’s the base materials for our stainless steel, the resins for our hoses, or countless other essentials.
Once these tariffs ripple through our domestic supply chains, the impact won’t just be higher material costs. It will be amplified by added transaction fees, supplier disruptions, and administrative overhead. The result? Cost increases that are greater than proportional—and far less predictable.
Amazon importers face a known, upfront tariff. U.S. manufacturers like us face cascading, opaque risks with no clear end.
Once these tariffs go into effect, don’t be surprised if a wave of U.S. manufacturers go under within the year.
We’ve already urged our U.S. representative to take immediate action to stop these tariffs—and we strongly encourage other small businesses to raise their voices now, before it’s too late.
Seller_Sram36TnVt73c
I'm wondering if the China to FBA shipments Amazon coordinates on behalf of Chinese sellers will be subjected to these tariffs... or did Jeff's $40 million pay day for the call girl documentary get Amazon an exemption?
I'm still remembering the upu pull out Bluff That was supposed to help us all by leveling the playing field with international shipping costs, but ultimately did not...
Seller_wM0nLLkM8WJfx
Since Bezos is a Friend of DT, I wonder how he's taking this tariff news? Or was he given an exemption?
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