Amazon Tariffs: Vital Info 2025 💰

Trump's 2025 tariff policies introduce significant cost increases for Amazon sellers. Import duties have risen from 0% to 145% on key product categories, the de minimis rule faces potential elimination, and landed costs are increasing substantially.

Amazon sellers importing from China or managing cross-border inventory face new cost structures that directly impact margins. A smartwatch that previously cost $12 to import now costs $26.50. Electronics face tariff rates up to 145%. Home goods see 25% increases across the board.

This guide explains how these tariffs affect Amazon sellers, the accounting challenges that arise, and strategies to maintain profitability during this transition period

Key Trade Tariff Updates: Latest Info for Amazon Sellers (May 2025)

De Minimis Tariff Adjustments

Trump administration announced on May 13, 2025, a reduction in tariffs on small-value "de minimis" shipments from China and Hong Kong. 

Previously, an executive order in April suspended the exemption, imposing a 120% tariff on packages valued under $800. The new adjustment lowers the tariff rate to a range of 54%–120%, aiming to ease trade tensions with China. This change is expected to reduce costs for Amazon's Haul platform and potentially renew ad spending by Chinese e-commerce platforms like Temu and Shein on U.S. social media platforms.

Amazon's Response to Tariff Transparency

Amazon faced criticism from the White House after reports emerged that the company considered displaying the impact of U.S. tariffs on product prices. The White House labeled this move as a "hostile and political act." In response, Amazon clarified that the discussions were preliminary and only involved Amazon Haul, a separate discount platform. There were no current plans to display tariff impact information across Amazon's main retail platform.

Impact on Amazon's Sales and Strategy

Despite intensifying tariff pressure, Amazon reported 10% sales growth in fiscal Q1 2025, which ended March 31. CEO Andy Jassy addressed the tariff situation on Amazon’s earnings call:

“We have not seen the average selling price of retail items appreciably go up yet,” Jassy said.
“Some of this reflects forward buying we did in our first-party selling and some reflects advanced inbounding our third-party sellers have done... but a fair amount of this is that most sellers just haven’t changed pricing yet.”

Jassy acknowledged that “no one knows exactly where tariffs will settle or when,” but hinted at early shifts in buyer behavior:

“We’ve seen consumers buy more from certain categories that may indicate stocking up in advance of any potential tariff impact.”

Notably, Amazon’s “everyday essentials” category, including groceries, household items, and personal care, grew more than twice as fast as the rest of the business and represented one out of every three units sold in the U.S. in Q1.

Jassy compared the current environment to early pandemic disruptions:

“During periods of discontinuity, substantial unexpected product trends emerge,” he said. “When the macroenvironment is uncertain, customers tend to choose sellers they trust who offer low pricing and speedy delivery...
We have emerged from these uncertain areas with more relative market segment share than we started and better set up for the future. I’m optimistic this could happen again.”

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Amazon's diverse seller base, with many sellers in various countries, provides some resilience against the uniform impact of tariffs.

Fulfillment Is Changing - And It Directly Affects Your Costs

Amazon’s new logistics model is a double-edged sword for sellers. On one hand, it’s driving efficiency. On the other hand, it's exposing sellers to more variables, especially in a tariff-driven environment.

What’s Changing Inside Amazon’s Network

According to CFO Brian Olsavsky, Amazon’s “newly re-architected” inbound network improved productivity in Q1 2025. By placing inventory closer to where customers are, Amazon is cutting delivery costs and boosting units per package. That’s good for their margins, and potentially yours.

But it comes with trade-offs.

“Better placement drives more in-stock selection, reduces travel distances, and speeds up delivery,” Olsavsky said. “And having inventory in the right place at the right time increases the likelihood that multiple items can be combined in a package, which helps reduce packaging and cost.”

Amazon is also cutting back its reliance on UPS. By mid-2026, over half of Amazon’s volume will be removed from the UPS network, a move that will push even more delivery and return responsibilities onto internal systems and possibly sellers using FBM or SFP models.

Why Tariffs Make This Even Harder

CEO Andy Jassy made it clear: with tariff deadlines looming, sellers are front-loading inventory to get ahead of price hikes.

But that causes a new problem.

“If you end up with too much inventory in your fulfillment network, it really slows down your productivity and your ability to get things out as quickly as you want for customers at the cost structure you want,” Jassy said.

In other words:

• Stock too late? You pay more on duties.
• Stock too early? You clog the network and rack up storage fees.

For FBA sellers, that’s a high-stakes balance. Amazon is optimizing its logistics, but it’s not optimizing for your margins. You need airtight COGS tracking, clear landed cost data, and accurate inventory accounting to stay profitable.

Amazon Q1 2025: Navigating Growth Amid Tariff Challenges

Despite the headwinds from renewed U.S.-China tariffs, Amazon reported robust financial results for the first quarter of 2025. Here's a breakdown of the key figures:

• Total Revenue: $155.7 billion, marking a 10% year-over-year increase.
• Online Store Sales: $57.41 billion, up 6% from Q1 2024.
• Physical Store Sales: $5.53 billion, a 6% increase year-over-year.
• North America Sales: $92.9 billion, reflecting an 8% growth.
• International Sales: $33.5 billion, also an 8% rise.
• Operating Income: $5.8 billion in North America (6.3% margin); $1 billion internationally (3% margin).
• Amazon Web Services (AWS): Revenue grew 17% to $29.27 billion.
• Advertising Revenue: Increased by 19% to $13.92 billion.

What Are Trump's Tariffs?

Trump's 2025 tariff policy reintroduces and expands import duties on goods from China and other trading partners. These tariffs are applied at customs and are paid by the importer of record, often the Amazon seller or their logistics intermediary.

New Tariff Rates Affecting Amazon Sellers 

These changes directly affect landed costs, product pricing strategies, and ultimately, your profit margins.

End of De Minimis?

One major shift is the potential elimination of the de minimis rule, which currently allows imports under $800 to bypass duties and formal customs clearance. If revoked:

• Amazon sellers using direct-to-consumer Chinese fulfillment (like Temu-style dropshipping) will face a dramatic cost increase.
• Shipping delays and customs brokerage fees will rise.
• Sourcing strategies will need to shift to avoid tariff-heavy SKUs or regions.

What Does This Mean for Amazon Sellers 

Here is an example of how these changes affect the seller’s bottom line. 

*These businesses are fictional, and these numbers are used as an example

Electronics Seller Tariff Impact

Product: Budget smartwatches from Shenzhen
Volume: 2,000 units/month
Pre-Tariff Landed Cost:

• Unit price: $10
• Shipping: $2
• Total: $12

Post-Tariff Cost (145% import duty):

• Tariff: $14.50
• New landed cost: $26.50

To preserve a $5 margin, the retail price would need to jump from $17 to over $32, a major price hike that may alienate customers.

Home Goods Seller Tariff Impact

Product: Cushioned pet beds (40ft container, 1,000 units)
Pre-Tariff Total Import Cost: $12,000
Post-Tariff (25%):

• Tariff adds $3,000
• New landed cost: $15,000

That’s a 25% increase in cost, which either eats into margins or forces a price increase, both of which put sellers under pressure.

What Are the Key Challenges Facing Amazon Sellers?

1. Tariff Costs Are Cutting Into Profits: Sellers importing from China are now hit with e-commerce tariffs ranging from 25% to 145%. If you’re running a private label or FBA, your margins just got hit hard. Even low-cost goods like smartwatches now require a 2x price hike to stay profitable.
   
   
2. More Red Tape at the Border: Customs clearance is slower and more expensive. If you relied on de minimis (duty-free imports under $800), that loophole may be gone. Expect new documentation, brokerage fees, and shipping delays, especially for direct-from-China dropshipping models.
   
   
3. Landed Cost and COGS Are Harder to Track: Tariff duties, freight, VAT, and platform fees all affect your true cost of goods. But most sellers still track this manually, which leads to inaccurate COGS, underreported expenses, and missed deductions. Over time, that can kill your bottom line.
   
   
4. Tax & Audit Risks Are Growing: With rising scrutiny on cross-border trade, sellers must keep airtight records, customs declarations, invoices, and tax treatment by SKU. Any mistake here opens you up to VAT penalties or compliance issues, especially if you sell in multiple markets.

Why Your Amazon Accounting Matters Now More Than Ever

If you're not tracking costs and taxes accurately in 2025, you're bleeding money, and you may not even know it.

Tariffs now Change Everything

A 25%–145% import duty doesn’t just raise your price, it changes your actual cost of goods sold (COGS). If you don’t capture that properly in your books, your margins are fake, your tax reports are wrong, and your forecasts are worthless.

VAT and Sales Tax Rules are Getting Stricter

Selling across borders? You’re now dealing with different tax rules for:

• UK VAT (with different rates by product),
• EU OSS (VAT by buyer’s country),
• U.S. sales tax (state-level, marketplace-facilitated),
• And customs duties based on origin, not sale.

Misclassify one payout or apply the wrong tax rate, and you could either overpay thousands or trigger an audit.

Manual Tracking is a Liability

If you’re still using spreadsheets, here’s what you’re risking:

• Missed tariff fees that inflate your COGS
• Unmatched payouts that create accounting gaps
• Incorrect VAT calculations that lead to overpayment or fines
• No audit trail, which leaves you exposed if revenue authorities come knocking

The cost of getting it wrong is too high. Automating your accounting isn’t just a convenience, it’s essential to survive.

Your next strategic move can be to hire an accountant who can handle the rapid changes in tariff accounting. 

How Link My Books Helps Amazon Sellers Stay Profitable

When you’re importing inventory, calculating COGS, and managing cross-border taxes, manual accounting doesn’t cut it. You need to track real costs per unit, match payouts to fees, and apply tax rates correctly. That’s where Link My Books comes in.

Here's how it solves your biggest problems:

Automatically Imports All Amazon Data

Sales, fees, refunds, shipping charges, marketplace taxes, it’s all pulled in automatically and organized correctly.

Tracks Tariff-Adjusted COGS

Include landed costs, shipping, and duties in your product-level COGS breakdown. This is essential when tariffs are inflating import costs by 25% to 145%.

 Accurate VAT & Sales Tax Mapping

No more guessing. Link My Books applies the correct tax rates per region, UK VAT, EU OSS, U.S. sales tax, and separates where Amazon collects taxes vs. where you do.

Reconciles Payouts in one Click

 Amazon payouts are split by type (sales, fees, refunds, taxes) and matched to your bank deposits in Xero or QuickBooks. No manual matching. No gaps.

Handles Multi-Currency & Multi-Channel

Selling on Amazon UK, EU, or US? Using Shopify or eBay too? Link My Books consolidates it all and accounts for currency differences and tax obligations.

Real-Time Profit Visibility

You get instant reports showing what’s selling, what’s costing you, and what you’re actually keeping. So you can fix margin leaks before they snowball.

Quick and Easy Setup, Scalable for Growth

Getting started with Link My Books is seamless. A guided setup wizard walks you through the process, and free 1:1 onboarding support ensures everything is configured correctly.

Whether you’re processing a handful of orders or handling thousands per day, Link My Books scales effortlessly with your business, keeping your financial records accurate as you grow.

And you can try it out for free, you don’t even need a credit card! 🚀

Further Best Practices for Sellers During Tariff Uncertainty

Here are some things you can do to make sure you weather this change:

Lock in Inventory Early (But Not Blindly)

If you rely on Chinese suppliers, bring in stock before new tariff deadlines hit. But don’t overload FBA, it could increase your storage costs and slow fulfillment. Balance timing with cost by using demand forecasts and checking Amazon’s storage limits.

Break Down Your Landed Costs Precisely

Include everything: product cost, shipping, customs brokerage, insurance, and now tariffs. If you don’t update your COGS with tariff-adjusted numbers, your profitability reports are fiction. Use tools like Link My Books to sync these figures to Xero or QuickBooks automatically.

Diversify Your Supply Chain

Overreliance on Chinese manufacturing is risky. Explore suppliers in Vietnam, Mexico, or even domestic options to reduce exposure to future duties. If you can’t move your supply chain, consider warehousing options in tariff-free zones to delay entry into the U.S.

Monitor Category Trends Weekly

Consumer behavior is shifting. Essentials are up, luxury is slowing. Use Amazon reports and sales trends to adjust your inventory mix. If your product is in a high-tariff category, reassess your pricing or bundling strategy to maintain margin.

Stay Tax-Compliant in Every Region

Each market has its own rules, OSS in the EU, marketplace tax in the U.S., UK VAT obligations. Automate this. Manual tax logic is too risky at scale. Link My Books applies the correct tax rules by product and region and keeps audit trails clean.

Will Amazon Be Affected by Tariffs?

Yes - directly and indirectly.

While Amazon as a platform doesn't "pay" tariffs, its cost to operate increases when sellers raise prices, fulfillment gets congested, and inventory flows are disrupted. Amazon responded by shifting logistics, front-loading stock, and adjusting relationships with carriers like UPS.

For sellers:

• FBA may become more selective and costly
• Inventory limits could tighten during high-demand seasons
• Amazon might penalize sellers who can’t deliver on-time or offer competitive pricing

In short: Amazon will optimize for its customers. You have to optimize for your margins.

So What Does the Future Hold for Amazon Sellers?

More complexity, tighter margins - but also opportunity.

Sellers who automate their books, understand true COGS, and react quickly to market and regulatory shifts will survive and even scale. But those who ignore their numbers, rely on manual processes, or misjudge their tax and tariff exposure will get squeezed out.

Expect:

• More tariff waves and de minimis restrictions
• Stricter tax enforcement across the UK, EU, and U.S.
• Continued pressure to deliver fast, cheap, and tax-compliant

The sellers who treat accounting as part of their growth stack, not just a back office task, will win.

FAQ on the Tariffs for Amazon Sellers

How should we think about bulk imports with tariffs?

Bringing in larger shipments now can help you beat upcoming tariff increases, but it’s a risk. Overloading Amazon FBA or your 3PL can increase storage costs and slow down fulfillment. If you front-load inventory, make sure:

• Your demand forecast supports it
• You can afford the upfront duties and cash flow impact
• You have accurate landed cost tracking to avoid margin misreads

Do I have to pay tariffs on Amazon?

If you are the importer of record, so yes. That includes private label sellers and most FBA sellers who own their inventory. Amazon doesn’t cover tariffs on your behalf. You’re responsible for customs declarations, duties, and making sure those costs are reflected in your accounting.

How will Amazon brands be affected?

Amazon’s own first-party inventory may absorb some impact via advanced shipping and warehousing, but third-party sellers will feel the squeeze first. Expect:

• More competition from Amazon-owned brands that can price lower
• Tighter inventory control policies during peak seasons
• Less tolerance for price hikes that impact Prime customers

What pricing strategies should I adopt now?

Start by breaking down your true COGS, including tariffs, then reassess:

• Increase prices on high-demand SKUs gradually
• Bundle products to maintain perceived value
• Adjust PPC bids to improve ACoS on higher-priced items
• Cut low-margin SKUs that can’t survive with added duties

What Does “Temporary Carve-Out for Eligible USMCA Items” Mean?

Some goods from Canada or Mexico qualify for temporary exemptions from new U.S. tariffs under the USMCA trade deal. This “carve-out” means they can bypass duties if they meet specific origin and compliance rules. If you’re sourcing from these regions, check product eligibility with your customs broker or freight forwarder.

Did Amazon cancel orders from China due to Tariffs?

Amazon has not officially canceled Chinese imports across the board. However, it has encouraged sellers to front-load inventory and may deprioritize slow-moving or high-duty products within FBA. Some sellers have seen delays or limits on shipments flagged as tariff-risk categories.

Streamline Your Amazon Accounting Automatically with Link My Books

If you're still trying to manage Amazon sales, COGS, VAT, and fees manually, you're doing it the hard (and risky) way.

Link My Books connects Amazon directly to your accounting software (Xero or QuickBooks) and:

✅ Automatically imports and categorizes every transaction
✅ Tracks tariff-inflated COGS correctly
✅ Applies the right tax treatment per region
✅ Reconciles payouts in one click
✅ Gives you a real-time view of profits, not guesses

Whether you're scaling fast or just trying to stay ahead of rising costs, Link My Books gives you the financial clarity to act confidently.

👉 Start your free trial today

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