New Tariffs on Chinese Imports: How They Impact Amazon Sellers and How to Stay Competitive
The U.S. government has recently imposed an additional 10% tariff on all goods imported from China, bringing the total increase to 20% this year, on top of existing import duties. Since an estimated 70% of the U.S. Amazon catalog consists of products sourced from China, this is a major shift that could impact sellers’ profitability.
However, not all sellers will raise their prices in response—many Chinese sellers will find ways to circumvent these tariffs, putting U.S.-based sellers at a disadvantage. This discussion explores how some sellers are avoiding tariffs and what strategies can help you stay competitive in this changing landscape.
How Some Chinese Sellers Circumvent Tariffs
Rather than absorbing the cost of higher import duties, some Chinese sellers will continue to leverage alternative shipping tactics to bypass tariffs entirely. Here are two common methods:
1️⃣ Smuggling Goods by the Kilogram
2️⃣ Under-Declaring Customs Value
What Can U.S. Sellers Do to Stay Competitive?
Since many Chinese sellers will continue keeping prices artificially low, U.S. sellers must be strategic to avoid losing market share. Here’s how:
🔹 Consider Using a 3rd-Party Freight Forwarder as the Importer on Record
🔹 Optimize Your Pricing Strategy
The Bottom Line: Adapt or Get Priced Out
The latest tariff increases pose a serious challenge for Amazon sellers importing from China, but the impact won’t be felt equally. Many Chinese sellers will continue to find ways to bypass tariffs, keeping their costs lower, while U.S. sellers struggle with rising import duties.
To stay competitive, sellers must think strategically, whether that means re-evaluating their import processes, optimizing pricing, or doubling down on branding and customer experience.
How are you planning to handle these new tariffs? If you found this post helpful, be sure to check out the video below for more insights and strategies. 🚀
The U.S. government has recently imposed an additional 10% tariff on all goods imported from China, bringing the total increase to 20% this year, on top of existing import duties. Since an estimated 70% of the U.S. Amazon catalog consists of products sourced from China, this is a major shift that could impact sellers’ profitability.
However, not all sellers will raise their prices in response—many Chinese sellers will find ways to circumvent these tariffs, putting U.S.-based sellers at a disadvantage. This discussion explores how some sellers are avoiding tariffs and what strategies can help you stay competitive in this changing landscape.
How Some Chinese Sellers Circumvent Tariffs
Rather than absorbing the cost of higher import duties, some Chinese sellers will continue to leverage alternative shipping tactics to bypass tariffs entirely. Here are two common methods:
1️⃣ Smuggling Goods by the Kilogram
- Some freight forwarders in China offer smuggling services, shipping products into the U.S. at a fixed cost per kilogram—currently about 22 RMB per KG.
- This method is especially useful for high-value, lightweight products like electronics and accessories.
- Because these shipments bypass normal customs channels, sellers using this method avoid all import duties, allowing them to maintain low prices while U.S. sellers are forced to raise theirs.
2️⃣ Under-Declaring Customs Value
- Chinese sellers frequently under-declare product values on customs forms, an issue that’s expected to increase with the new tariffs.
- These sellers hire third-party freight forwarders as their Importer on Record (IOR), meaning they are not personally liable for customs fraud.
- If U.S. Customs and Border Protection (CBP) detects an issue, the importer on record—not the seller—is responsible.
- U.S. sellers, on the other hand, import directly under their business name and must accurately declare all customs values, making them more vulnerable to fines, seized shipments, or retroactive duty payments.
What Can U.S. Sellers Do to Stay Competitive?
Since many Chinese sellers will continue keeping prices artificially low, U.S. sellers must be strategic to avoid losing market share. Here’s how:
🔹 Consider Using a 3rd-Party Freight Forwarder as the Importer on Record
- Disclaimer: This is not advocating for illegal practices.
- Similar to how Chinese sellers structure their imports, U.S. sellers can use a third-party importer on record to remove direct liability.
- Many freight forwarders offer IOR services, which can provide more flexibility in how customs values are declared.
🔹 Optimize Your Pricing Strategy
- If tariff avoidance isn’t an option, increase perceived value through:
- ✅ Stronger branding and professional packaging
- ✅ Bundling products to justify a higher price
- ✅ Premium positioning to target a higher-income customer base
- Many buyers are willing to pay more for a better overall product experience, so even if you can’t compete solely on price, you can differentiate through brand trust and quality.
The Bottom Line: Adapt or Get Priced Out
The latest tariff increases pose a serious challenge for Amazon sellers importing from China, but the impact won’t be felt equally. Many Chinese sellers will continue to find ways to bypass tariffs, keeping their costs lower, while U.S. sellers struggle with rising import duties.
To stay competitive, sellers must think strategically, whether that means re-evaluating their import processes, optimizing pricing, or doubling down on branding and customer experience.
How are you planning to handle these new tariffs? If you found this post helpful, be sure to check out the video below for more insights and strategies. 🚀