Navigating Trump’s Tariffs: How Amazon Sellers Can Save Millions with North American Suppliers

Understanding the Impact of Tariffs on E-commerce

President Donald Trump’s aggressive tariff policies, implemented in April 2025, have sent shockwaves through the e-commerce landscape, particularly for Amazon sellers. With tariffs on Chinese imports reaching a staggering 145%, sellers who rely on China for manufacturing and assembly—estimated to account for up to 70% of goods sold on Amazon—are facing unprecedented challenges. These tariffs, combined with rising Amazon fees for storage, fulfillment, shipping, and advertising, have squeezed sellers’ already razor-thin margins, forcing tough choices: raise prices and risk losing the Buy Box or absorb costs and face potential insolvency.

For small businesses, the impact is existential. Dusty Kenney, a U.S.-based seller of PrimaStella baby products, told CNBC, “Paying the added tariffs could put her out of business if they continue.” Similarly, Gina Castagnozzi, who sells compostable dog waste bags, faced a tariff hike from 54% to 125% mid-shipment, leaving her scrambling to cover costs. These stories highlight the chaos and uncertainty sellers face as tariffs disrupt supply chains and inflate costs.

Amazon’s response has been mixed. CEO Andy Jassy acknowledged that third-party sellers, who make up 60% of Amazon’s sales, will likely “pass the cost on” to consumers. The company has made strategic moves, such as forward inventory buys and canceling some direct import orders from China, to mitigate price hikes. However, data from SmartScout shows nearly 1,000 products on Amazon saw price increases averaging 29% since April 9, 2025, affecting categories like clothing, jewelry, and electronics. While Amazon disputes the scale, claiming fewer than 1% of items saw increases, the trend is clear: costs are rising, and sellers are feeling the pinch.

The Case for North American Suppliers

Amazon’s decision to publish detailed cost breakdowns for sellers, including fulfillment, storage, and advertising fees, aims to provide transparency. However, this move has inadvertently highlighted the platform’s high operational costs, which exacerbate the tariff burden. For instance, sellers face rising Fulfillment by Amazon (FBA) fees, with additional charges for inventory storage and shipping. Jerry Vida of Triton Distribution noted that Amazon’s fees have “steadily increased,” compounding the impact of tariffs on high-end products like hair curling irons sourced from China.

Moreover, Amazon’s “fair pricing” rules penalize abrupt price hikes, creating a delicate balancing act for sellers. Raising prices to offset tariffs risks losing visibility in search results or the Buy Box, as Amazon’s algorithms favor lower-priced competitors. Fahim Sheikh of Trellis reported that some sellers are considering exiting the business entirely, as margins—often 10-15%—cannot absorb 145% tariffs. This dynamic underscores the need for cost-effective sourcing alternatives to maintain competitiveness.

Strategies to Transition Your Supply Chain

As a North American supplier of promotional goods and services, we offer a lifeline for Amazon sellers battered by tariffs and rising costs. By partnering with us, merchants can bypass the financial strain of importing from high-tariff regions like China and unlock significant savings. Here’s how:

1. Tariff-Free Sourcing

Goods produced in North America, particularly in the U.S., Canada, or Mexico (subject to lower 10-25% tariffs), are exempt from the 145% duties on Chinese imports. This alone can save sellers millions in import costs. For example, a product costing $10 to import from China now incurs an additional $14.50 in tariffs, while a comparable North American product avoids this burden entirely.

2. Reduced Logistics Costs

Sourcing locally eliminates the high shipping costs and customs delays associated with trans-Pacific imports. With North American production, sellers benefit from shorter lead times—critical for events like Amazon’s Prime Day—and lower freight costs. Jamie Roller of Dr Squatch noted that U.S.-based manufacturing gives his business a “relative advantage” by avoiding tariff-related FBA cost increases.

3. Competitive Production Costs

While China’s low production costs have long been a draw, North American suppliers have closed the gap through automation, efficient supply chains, and economies of scale. Our state-of-the-art facilities deliver high-quality promotional goods—such as branded apparel, tech accessories, and office supplies—at prices competitive with pre-tariff Chinese rates. By streamlining production, we help sellers maintain healthy margins without passing costs to consumers.

4. Brand Protection and Innovation

Chinese manufacturers are notorious for copying successful Amazon products, often within months. North American suppliers, bound by stricter intellectual property laws, offer greater protection for your brand. We work closely with sellers to develop unique, high-value products that stand out in a crowded marketplace, reducing reliance on price wars. As one seller noted, “Chinese manufacturers can copy everything about your product, but they cannot copy your brand.”

5. Consumer Appeal

Sourcing from North America aligns with growing consumer demand for “Made in the USA” or “North American-made” products. This branding can justify slightly higher prices, as customers are often willing to pay a premium for quality and local production. Our promotional goods are designed to meet these expectations, enhancing seller competitiveness.

Real-World Savings

Consider a seller importing 10,000 units of a $10 product from China. Pre-tariff, the import cost is $100,000. With a 145% tariff, the cost jumps to $245,000—an additional $145,000. By sourcing from us in North America, the same 10,000 units might cost $120,000 (accounting for competitive pricing), saving $125,000 per order. Scaled across multiple products or sellers, these savings reach millions, preserving profitability and market share.

Practical Tactics for Reducing Tariff Risk

To maximize the benefits of partnering with us, Amazon sellers should adopt the following strategies:

• Diversify Sourcing Now: Shift to North American suppliers before pre-tariff inventory runs out. Experts warn that price stability is temporary, and costs will rise once stockpiles deplete.
• Optimize Product Catalogs: Focus on high-margin, tariff-insensitive categories like promotional goods, where our expertise in customization and quality shines.
• Leverage Branding: Invest in unique branding and product differentiation to reduce price sensitivity. Our design team can help create standout promotional items that resonate with consumers.
• Streamline Logistics: Use our regional distribution networks to reduce FBA fees and improve fulfillment efficiency, ensuring compliance with Amazon’s delivery standards.

Conclusion: Turning Challenges into Opportunities

Trump’s tariffs have upended the Amazon marketplace, forcing sellers to navigate a minefield of rising costs and competitive pressures. Amazon’s choice to publish costs has shed light on the platform’s high fees, further straining sellers’ margins. However, by partnering with a North American supplier like us, merchants can sidestep tariffs, reduce logistics costs, and protect their brands—all while saving millions. As the tariff landscape evolves, those who adapt by sourcing locally will not only survive but thrive in the face of adversity.

Ready to save millions and secure your Amazon business? Contact us today to explore tariff-free, high-quality promotional goods and services tailored to your needs.