New China Tariffs: Amazon Seller Guide to Fees and Alternatives

The world of Amazon selling is changing fast, and sellers importing from China are feeling the impact. With the end of the de minimis exemption and higher tariffs on Chinese goods, understanding how these rules affect pricing, fees, and overall costs has never been more critical.

Whether you’re calculating tax, exploring sourcing alternatives outside China, or wondering how tariffs will affect your bottom line, this guide breaks it all down. We’ll explain the meaning of new tariffs, rules, and exemptions for Amazon sellers.

For years, Amazon sellers enjoyed a helpful loophole known as Section 321 or the $800 duty free rule, which allowed most small shipments from China to enter the U.S. without paying tariffs or completing extensive customs paperwork. It was a simple way to import goods while keeping pricing competitive and operations smooth.

That changed on August 29, 2025, when the de minimis exemption officially ended. Now, every shipment, even those previously considered “small”, is subject to tariffs, additional fees, and standard customs procedures. Sellers can no longer rely on automatic exemptions, which means tax calculations and pricing strategies need a fresh look.

All imports now require proper documentation, and customs may assess tariffs on each shipment individually. For Amazon sellers, this means more fees upfront and careful tracking of costs to avoid surprises that could squeeze profit margins. The end of de minimis marks a significant shift in importing from China, making it crucial to understand the new rules and adapt accordingly.

The new tariff rules are more than just a paperwork headache. They’re reshaping how Amazon sellers think about sourcing, pricing, and competition. With every shipment from China now subject to tariffs and fees, even small sellers need to rethink strategies that were once low-risk. Understanding these changes is crucial for protecting margins and staying competitive in a fast-moving marketplace.

The end of the de minimis exemption has introduced significant cost increases for Amazon sellers. Previously, small shipments from China under $800 were exempt from tariffs and customs fees, but now every imported unit faces duties and paperwork.

This change has led to a 10–25% rise in the cost of goods sold (COGS) for many sellers, particularly those in private label, wholesale, or arbitrage models. With prices going up on imported goods, small trial orders may no longer be viable for new sellers. Beginners are hit hardest, as they lack the capital to absorb these costs, while established sellers with diversified supply chains can adapt more easily.

The new tariff landscape has caused significant disruptions in logistics and shipping. Delays at U.S. ports and increased customs scrutiny have slowed down the movement of goods. Sellers are experiencing longer lead times, which can lead to stockouts and missed sales opportunities. Additionally, increased tariffs have raised shipping costs, further squeezing profit margins.

The higher tariffs on Chinese imports have shifted the competitive landscape on Amazon. Domestic fulfillment has become more advantageous, as U.S.-based sellers are less affected by import duties. This shift has allowed U.S. brands and local producers to gain market share, as consumers become more price-sensitive and seek alternatives to higher-priced imported goods.

Conversely, fast fashion players like Shein and Temu are losing ground, as their reliance on Chinese manufacturing makes them more vulnerable to the increased tariffs. In the first quarter of 2025, Chinese e-commerce exports to the U.S. plummeted by 65% due to heightened tariffs, indicating a significant impact on these platforms.

These shifts underline a clear message: Amazon sellers can no longer treat imports from China as a low-cost, low-risk strategy. Staying profitable now requires careful planning, cost tracking, and strategic adaptation to the new tariff environment.

As the landscape of global trade shifts, Amazon sellers are exploring new avenues to source products beyond China. While the allure of cost-effective manufacturing in China has been undeniable, rising tariffs and logistical challenges have prompted a reevaluation. Let's delve into three viable alternatives: the United States, Canada, and Mexico.

Manufacturing in the U.S. offers the distinct advantage of the "Made in USA" label, which can enhance brand perception and consumer trust. While production costs are higher, the proximity to the U.S. market can lead to reduced shipping times and costs. Key industries include aerospace, automotive, and electronics. For example, in August 2025, U.S. manufacturing output rose 0.2 percent month-over-month, with motor vehicle and parts production surging 2.6 percent, an impressive rebound that underscores the resilience of core sectors.

Canada's participation in the USMCA provides tariff exemptions for smaller shipments, making it an attractive option for Amazon sellers. The Canadian manufacturing sector is diverse, with strengths in industries such as automotive, petroleum, and food products. In July 2025, Canadian factory sales rose by 2.5% compared to June, driven by increased sales in motor vehicles, petroleum, and coal products.

Mexico's manufacturing sector continues to thrive, offering competitive advantages for Amazon sellers seeking alternatives to Chinese imports. In July 2025, Mexico's merchandise exports grew by 4% year-on-year, reaching a total of $56.7 billion, with the manufacturing sector playing a pivotal role in this growth. Key industries include automotive, textiles, and electronics, bolstered by favorable trade agreements under the USMCA. The country's strategic location, skilled labor force, and robust infrastructure make it an attractive option for nearshoring.

When seeking suppliers outside China, Amazon sellers need to be strategic and thorough. It’s not just about finding the cheapest option, but rather about reliability, responsiveness, and the ability to meet your specific needs. Key factors to consider include:

To streamline this process, sellers can leverage the Sellerhook Supplier Sourcing Report. This comprehensive report helps you connect with verified, flexible, and cost-effective suppliers across multiple regions. When filling out the criteria form for the report, you can also specify preferences for the supplier’s country - for example, requesting only U.S.-based suppliers or avoiding those from China. With the report, Amazon sellers can avoid weeks of back-and-forth emails, reduce the risk of unreliable partners, and accelerate product development, which are all critical advantages when navigating the impact of tariffs and rising fees on imported goods.

Navigating the post-de minimis landscape and higher tariffs on Chinese goods can feel daunting, but Amazon sellers have multiple strategies to stay profitable. With careful planning, smart sourcing, and informed pricing decisions, you can minimize the impact of fees, tax, and shipping costs. Here are actionable tips to adapt successfully.

With higher tariffs and added fees, pricing your products correctly is more critical than ever. Sellers should calculate total landed costs, including tax, customs fees, and shipping, to ensure margins remain healthy. Adjusting retail prices strategically can help offset increased costs without losing competitive edge.

Relying solely on Chinese suppliers is no longer a low-risk option. Exploring alternatives in the United States, Canada, and Mexico can reduce exposure to Trump-era tariffs and logistical delays. Diversifying also allows sellers to test different suppliers and product categories, maintaining flexibility in case costs or supply chains fluctuate.

Using domestic fulfillment centers or Amazon’s FBA network in the U.S. can reduce shipping time, cut costs, and appeal to customers who value faster delivery. Sellers may also find that U.S.-based suppliers’ “Made in USA” branding enhances pricing power and consumer trust.

Higher tariffs and longer shipping times make inventory planning more important than ever. Track sales velocity, lead times, and stock levels to prevent stockouts or overstocking. Sellers can use software tools or Amazon’s analytics to forecast demand accurately, minimizing unnecessary fees and storage costs.

Tariff policies, customs rules, and de minimis thresholds may continue to evolve under new legislation. Staying informed through news updates, government websites, and industry reports ensures you can quickly adapt pricing, sourcing, and logistics strategies. Knowledge of upcoming changes helps you calculate tax and fees correctly and avoid surprises.

The end of the de minimis exemption and rising tariffs on Chinese goods mark a new chapter for Amazon sellers. Understanding China tariffs is key for Amazon sellers seeking to protect margins and plan sourcing strategies. By exploring alternatives beyond China, staying on top of regulatory updates, and leveraging tools like Sellerhook, sellers can adapt to higher fees, protect margins, and remain competitive in a shifting marketplace.

When did the U.S. end the de minimis exemption?
The official end date of the de minimis exemption was August 29, 2025, affecting all shipments from China. This means all imports, including shipments under $800, are now subject to tariffs, fees, and standard customs paperwork, affecting pricing and profit margins for Amazon sellers who previously relied on duty-free small shipments from China.

What are the best countries to source products outside China?
Top alternatives include the United States, Canada, and Mexico. U.S. suppliers offer “Made in USA” branding and consumer trust, Canadian suppliers benefit from USMCA tariff exemptions on small shipments, and Mexican suppliers provide lower labor costs and duty savings. Diversifying sourcing can reduce tariffs, shipping delays, and margin pressure for Amazon sellers.

How can sellers calculate final costs after tariffs?
Sellers calculate total landed costs by combining the product cost, shipping, tariffs, tax, and any additional fees. Include customs paperwork, duties per shipment, and Amazon fulfillment costs. Accurate calculation ensures correct pricing, protects profit margins, and helps plan inventory strategies under the new rules for importing goods from China or other countries.