Amazon Tariffs Update with Free Calculator

Updated April 15, 2025: Ongoing trade policy changes are dramatically reshaping the landscape for Amazon sellers, with sweeping tariff increases and de minimis rule changes impacting costs, compliance requirements, and competitive dynamics. Here’s what 3P vendors and 1P sellers need to know—and do—to maintain profitability in 2025.

Amazon Tariffs Calculator

Use our Tariff Impact Calculator to determine exactly how these new tariffs will affect your business costs. Simply enter your product’s current normal duty rate and the country of origin to see a side-by-side comparison of your costs before and after the new tariff implementations.

Understanding your specific tariff exposure is the first step toward developing an effective strategy. The calculator above provides a clear picture of how these changes will affect your bottom line both in the short term and after country-specific July 9th rate increases take effect.

Key Amazon Tariffs Changes Impacting Sellers

As of April 2025, the US has implemented major trade policy updates that directly affect Amazon sellers importing goods globally, especially from China. These changes influence sourcing strategies, pricing, and supply chain efficiency. The tariff situation remains fluid, with President Trump announcing new developments and exemptions as recently as April 13, 2025.

Understanding the New Tariff Structure

Quick Facts

• De Minimis Exception (China only): Eliminated for low-value Chinese goods; still available for most other countries
• China Tariffs: 145% additional tariff (20% base + 125% reciprocal), stacked on top of existing base duty rates and Section 301 tariffs
  • Base Duty Rate: The standard import tariff applied to goods from most countries, ranging between 0%–5% depending on the HTS code. 
  • Section 301 Tariffs (China only):  Introduced in 2018 and still in effect, with duties ranging from 7.5%–100% tariffs.
  • IEEPA Tariff (China only): Under the International Emergency Economic Powers Act (IEEPA), an additional 20% emergency tariff was introduced to address unfair trade practices by China  effective March 4, 2025. Sometimes referred to as the fentanyl tariff, it aims to pressure China to curb fentanyl trafficking into the U.S. and could be reduced or removed if China takes effective action.
  • Reciprocal Tariff (China only): A 125% tariff applies to all Chinese imports effective April 9, 2025. The tariff rate escalated quickly as China and Trump  exchanged retaliatory  increases in a growing trade standoff.
  • Total Impact on Chinese Imports: As these tariffs stack one on top of the other, cumulative tariff burden for Chinese imports can climb to 245%, before shipping or storage fees
• Universal Tariff (Most Other Countries): A flat universal minimum 10% import duty  applied to most trading partners with some isolated exceptions for specific countries and goods , effective as of April 10th.
• Reciprocal Tariff (Approximately 60 Select Countries): Reciprocal tariffs seek to balance the scales by raising U.S. tariffs while pressuring trading partners to reduce theirs. For example, U.S. agricultural products face a 100% tariff at India’s borders, while our average tariff on Indian goods is just 5%. Proposed reciprocal tariffs for India are 27%.
  • Reciprocal tariffs were to be implemented April 9th, but were paused until July 9, 2025 for additional negotiations, when rates will resume, varying from 11%–46% depending on the country.

China Tariff Stack

Chinese imports now face one of the most aggressive tariff structures in U.S. history. These new tariffs apply in addition to Base Duty rates and the Section 301 tariffs that have been in place since 2018. 

Total Tariff Breakdown for $1,000 Shipment Value from China

So $1,000 in product imported from China could now cost $2,720 landed—before you even factor in freight, FBA fees, or storage.

De Minimis Rule Changes

The de minimis threshold previously allowed imports valued under $800 to enter the US duty-free. As of April 2025:

1. Complete De Minimis Elimination for Chinese Goods

Effective May 2, 2025, all imports from China and Hong Kong are excluded from the U.S. de minimis exemption. That means every package, regardless of value, is now subject to tariffs and import procedures. Previously, shipments under an $800 value could enter duty-free — a loophole heavily used by sellers on platforms like Temu and Shein.

2. Tariffs on Postal Shipments

For packages under $800 shipped via international mail, the U.S. has introduced steep new charges: 120% ad valorem tariff – based on the item’s value – or a flat $100 fee per postal item starting May 2, whichever is greater, increasing to $200 per item on June 1, 2025.

For a $50 package, you’d pay $60 in April (120% tariff), $100 from May 2 to May 31 (flat fee), and $200 starting June 1 (flat fee).

These changes eliminate the cost-saving benefits of using postal networks for small Chinese shipments.

3. De Minimis Still Applies Elsewhere

For now, the $800 de minimis threshold remains in effect for shipments from non-Chinese countries, providing an opportunity to shift sourcing and maintain duty-free entry for low-value items.

4. Additional Duties Still Apply (Sections 201/232/301)

Even with de minimis in place for other countries, goods falling under these trade enforcement programs still face duties:

• Section 201 – Solar panels, washing machines
• Section 232 – Steel and aluminum
• Section 301 – Broad categories of Chinese imports

Financial Impact on Amazon Sellers in 2025

New tariffs, combined with the elimination of de minimis benefits, are fundamentally changing the cost structures for both 3P sellers and 1P vendors.

For 3P Sellers

Many 3P sellers — especially those sourcing from China — now face massive increases in landed costs due to new U.S. tariff rules. Let’s break down what this means.

Before April 2025: A $600 shipment of hair accessories from China could enter the U.S. duty-free under the $800 de minimis rule.

After May 2, 2025, two scenarios apply depending on shipping method:

Postal Shipment (e.g., via USPS)

• 120% tariff = $720
• Or $100 per item, whichever is greater
• Total Cost = $1,320

Non-Postal Shipment (e.g., courier or cargo)

• Stacked tariffs (10% + 20% + 125%  = $930
• Total Cost = $1,530
• Additional paperwork and customs filings required

Note: These calculations exclude base duties, Section 301 tariffs, IEEPA, and Reciprocal. Actual costs may be higher depending on HTS classification

These changes hit hardest for China-based sellers — who, according to Marketplace Pulse, make up nearly 50% of Amazon’s 10,000 largest 3P sellers.

For 1P Vendors

Amazon 1P vendors – who supply goods directly to Amazon under contract – face even greater financial strain because Amazon often forces them to absorb tariff-related costs without offering the pricing flexibility that 3P sellers have.

Key Data Points from Morgan Stanley:

• 25% of Amazon’s 1P inventory comes from China
• 1P products make 40% of all Amazon sales
• Compared to other ecommerce players, Amazon has high tariff exposure:
  • Amazon (25%) vs. Industry Average (~10%)
  • Other platforms: Revolve (22%), eBay (11%), Etsy (3%), Peloton (3%), Figs (0%)

Margin Squeeze for Vendors: A vendor supplying $1M in Chinese goods now faces:

• 155% tariff → $1.55M in new costs
• Limited ability to pass this cost to Amazon without renegotiating contracts
• Many vendors must either absorb the costs or risk damaging their Amazon partnership

Amazon Seller Compliance 2025

The new regulatory environment creates several operational hurdles:

1. HTS Code Accuracy: The shift to mandatory 10-digit HTS codes increases complexity. Misclassification can result in significant fines on product value. 
2. Forced Labor Compliance: Customs and Border Protection (CBP) is intensifying scrutiny of supply chains, particularly for Chinese goods. Penalties can include large fines and imprisonment.
3. Customs Delays: Enhanced entry requirements are extending clearance times, leading to delays and potential inventory stockouts.

Strategies to Mitigate Tariff Impact

Duty Drawbacks: Getting Money Back

A little-known strategy that can recover significant costs is duty drawbacks – essentially refunds of duties you’ve already paid:

• What They Are: Refunds of up to 99% of duties, taxes, and fees paid on imported goods that are later exported or destroyed under supervision.
• When They Apply:
  • You paid customs duties on products you imported
  • The products didn’t sell and were destroyed under supervision
  • You exported the products and sold them through non-US channels (e.g., Amazon.ca)
• Qualifying Questions:
  • Do you import products or raw materials and then export them?
  • Have you written off unsold inventory by shipping it overseas or destroying it?
  • Are you paying significant duties on imported goods?
  • Do you have reliable documentation on shipments in and out?
  • Have you grown internationally and now export more than before?
• Process: There are very specific steps required to file and execute a duty drawback, including filing an Intent to Export, Destroy or Return form and working directly with U.S. Customs & Border Protection throughout the process. Consult with a customs broker to assist in filing claims and building processes within your own business.

Bonded Warehouses: Deferring Tariff Payments

Another powerful strategy, especially for sellers facing cash flow challenges, utilizing bonded warehouses:

• How They Work: Products are stored in special Customs bonded warehouses where tariffs remain unpaid until items are withdrawn for sale.
• Benefits:
  • Pay duties only when you pull units out for sale
  • Improve cash flow by spreading out tariff payments over time
  • Match tariff costs to actual sales rather than paying upfront
  • Potentially avoid duties entirely on items that don’t sell or are re-exported
• Process:
  • Consult with a professional customs broker to gain a more detailed understanding of the process including fee structure, paperwork filings and other requirements. 

Supply Chain Diversification

Relying solely on Chinese manufacturing is now riskier than ever with the 145% tariff rate:

• Short-term (April-June 2025):
  • Expedite shipments from countries facing increases after July 9
  • Verify country of origin documentation for all inventory
  • Reassess pricing to account for current tariffs (especially the 145% on Chinese goods)
  • Assess other cost centers (fees, etc.) for potential reductions to offset tariff increases
  • Consider air freight for urgent inventory before July deadlines
  • Review inventory mix and potentially discontinue low-margin Chinese products
• Mid-term (July-December 2025):
  • Consider shifting 30-50% of production to alternative markets like the Philippines (18% tariff after July), India (27%), or Malaysia (24%)
  • Evaluate USMCA-qualified manufacturing in Canada/Mexico (0% additional tariff)
  • Consider “Made in USA” alternatives for high-tariff items
• Country Selection Strategy: When selecting alternative sourcing countries, consider:
  • Tariff rate impact: The difference between 27% (India) vs. 46% (Vietnam) is significant
  • Manufacturing capabilities: Each country has specific industries they excel in:
    • Vietnam: Furniture, apparel, electronics
    • India: Textiles, jewelry, handicrafts
    • Malaysia/Taiwan: Electronics and tech components
    • Cambodia/Bangladesh: Apparel and textiles
    • Mexico: Automotive, electronics, furniture (with USMCA benefits)
  • Shipping times and costs: Proximity to the US can offset higher tariff rates
  • Quality control infrastructure: Some countries have more established manufacturing standards
  • Supply chain risks: Evaluate political stability and secondary tariff threats
• Leverage SPS Commerce: The SPS Retail Network provides access to vetted US manufacturers, to streamline your supply chain operations.

Optimizing Fulfillment Strategy

As supply chain faces delays and becomes more expensive, it may be a good time to reassess and identify areas of your business where you can offset these challenges.

• Seller Fulfilled Prime (SFP): Bypassing FBA check-in delays with SFP may lead to faster shipping times without hurting your Buy Box win rates.
• Amazon Warehousing & Distribution (AWD): AWD provides discounted bulk storage rates, reducing per-unit storage costs for high-volume sellers. However, AWD also tends to see check-in and transfer delays so this should be factored.
• Third Party Logistics Evaluation: With increasing FBA costs and tariff pressures, 3PLs may offer cost advantages. Key questions to ask potential 3PLs:
  • What are their complete fee structures?
  • Can they facilitate bonded warehouse processes?
  • How do they handle customs clearance and documentation?
  • What is their experience with duty drawback filings?
• Bulk Shipments: Consolidating small shipments into bulk orders may result in substantial per-unit savings on shipping.

Tariff Classification Optimization

Tariffs can vary significantly based on product classification, so reviewing and optimizing tariff codes could unlock potential cost savings:

• Consult an Import Expert: Just as accountants optimize tax deductions, import specialists can help legally reclassify products for lower tariff rates. Honu Worldwide offers a free audit to discover potential reclassification.
• HTS vs HS Codes: If you are still using HS codes for your shipments to the United States, you will need to begin using HTS codes as U.S. Customs is cracking down on this as well. 
• Evaluate Sourcing Materials: Different raw materials have varying tariff rates—adjusting materials could reduce costs.
• US-Mexico-Canada Agreement (USMCA) Qualification Strategy: For Canada/Mexico sourcing:
  • Products must meet specific rules of origin
  • Required documentation includes a USMCA certification of origin
  • Not all products are covered by USMCA’s duty-free provisions
  • Failing to meet requirements results in the 25% non-USMCA rate

Action Steps for Q2 2025

1. Conduct Cost Analysis: Use our US Import Tariff Calculator to model your new landed costs with updated duty rates.
2. Renegotiate Supplier Terms: Push Chinese suppliers for reduced prices to offset tariff increases or consider shifting to alternative countries.
3. Implement Duty Drawback Procedures: Set up processes to reclaim duties on exported or destroyed inventory.
4. Leverage Bonded Warehouses: Improve cash flow by deferring duties on high-value inventory.
5. Verify HTS Classifications: Ensure all products use the correct classification codes to prevent overpayment.
6. Monitor Policy Changes: Stay alert for exclusions or modifications to the current tariff structure.