New Tariffs and Amazon Sellers: How to Protect Your Margin

The last two weeks have brought the biggest changes to US import tariffs in decades. New tariffs now apply to imports from most countries, and tariffs on many goods from China have jumped far above 100%. Rates have changed several times in days, and more changes may come.

For Amazon sellers who import products, this is a serious margin problem. Here is how we are helping brands respond, without making rushed decisions that hurt the business long term.

Step 1. Know your real exposure

Start with facts, not headlines.

• List every product with its country of origin and tariff classification.
• Calculate the new landed cost per unit using current tariff rates.
• Check how much stock you already have in the US and what is on the water.
• Work out the new margin for each product, including all Amazon fees and ad costs.

Some products may be hit hard. Others barely at all.

Step 2. Protect your existing stock

Stock already landed was bought at old costs. It is valuable. Do not rush to discount it. If anything, slow sales a little on products that will cost much more to replace:

• Lower ad bids on low margin search terms.
• Pause coupons on products facing big cost increases.
• Consider small price increases now, before replacement stock arrives.

Step 3. Plan pricing carefully

Most brands will need to raise prices on some products. Do it in steps and watch conversion, as we described back in 2022 in our post on raising prices during inflation. Many competitors face the same costs, so category prices may rise together.

Step 4. Review your ad targets

A lower margin means a lower break-even ACoS. Update targets product by product, using our approach for ACoS targets by product. Cut spend on search terms that only worked at the old margin.

Step 5. Look at sourcing, but do not panic

Moving production to another country takes time, testing and money. Tariff rates are also changing fast. Talk to your suppliers about options, but avoid big commitments until the picture is clearer.

Step 6. Watch your inventory timing

Some sellers are rushing to import before possible further increases. Others are pausing orders. Both have risks. Bringing in too much stock can mean high storage fees and capacity problems. Too little can mean stockouts and the low inventory level fee. Plan a middle path based on sales forecasts.

Step 7. Protect cash flow

Tariffs are paid when goods arrive, before you sell them. Make sure you have enough cash to cover duties on your next shipments. Talk to your customs broker about timing and costs.

The bottom line

Tariffs are a real hit to many Amazon sellers right now. Know your exposure, protect existing stock, raise prices carefully, update ad targets and avoid rushed sourcing moves. If you want help reworking your pricing and ads around new costs, request a free audit or see our full service account management.

FAQs

How do tariffs affect Amazon sellers?

Tariffs raise the landed cost of imported products, which shrinks margins unless prices rise. They also affect cash flow because duties are paid when goods arrive.

Should I raise prices on Amazon because of tariffs?

Many brands will need to. Raise prices in steps on the products most affected, and watch conversion and rank closely.

Should I import more stock before tariffs rise again?

Be careful. Overstocking brings storage costs and capacity issues. Plan based on sales forecasts and cash flow, not headlines.