Tariffs blow by blow—each hit lands harder than the last, leaving businesses reeling and scrambling to keep up. The pressure’s mounting, and for many sellers (and suppliers), it’s pushing them to the brink, forcing them into drastic moves just to stay afloat.
If you thought the trade war was winding down, think again
- Amazon seller hit with $14.5K tariff 💸
- 15% off + FREE reviews! 🎯
- Southeast Asia tariffs threaten China-exit sellers 🌏
- Etsy shields sellers from tariff delays 🛡️
- China suppliers offering illegal tariff fixes 🚨
BIG IDEA
Amazon seller Ramon Gonzalez had done everything right.
He sourced his family-friendly card games from China, priced them competitively on Amazon, and built a small business that was doing over $1.4 million in annual revenue. Then the trade war hit—hard.
In just a few days, tariffs on his imports jumped from 54% to a staggering 145%. The Wall Street Journal delved into how that wasn’t just a headache—it was a full-blown threat to his business.
💥 A $10K shipment, a $14.5K tariff
Gonzalez had placed an order for a new travel-themed card game, worth around $10,000. He tried to get it shipped before the levies kicked in. No luck.
By the time it arrives, here’s what he’s facing:
- 145% tariff = $14,500 in duties
- That’s more than the value of the goods themselves
- And that’s if the tariff doesn’t rise again before it clears customs
🔧 Scrambling for solutions
With profit margins squeezed dry, Gonzalez is doing everything he can to adapt:
- Cut costs: Canceled a $1,200 seller education subscription
- Adjust pricing: May raise a $24.97 game to $39.99 (but risks killing demand)
- Explore new suppliers: Looking into Vietnam and Mexico
- Run pricing models daily: No clue what import costs will be tomorrow
Summer is when he typically places orders for the holiday season—a make-or-break period for his business. If he can’t secure affordable inventory soon, the entire Q4 could be in jeopardy.
🧃 The bigger picture
Gonzalez isn’t alone. Thousands of Amazon sellers are now forced to make impossible choices:
- Raise prices and risk losing customers
Absorb costs and watch profit vanish - Or scale back operations—and possibly shut down entirely
The tariff war might be a policy move in Washington, but for sellers like Gonzalez, it’s personal. And the future of their businesses hangs in the balance.
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- Target Meet Meat: Online meat and seafood seller ButcherBox is now available on Target Plus, Target's digital marketplace.
ECOMMERCE NEWS
New Southeast Asia tariffs threaten sellers who moved production from China
For U.S. sellers who moved their manufacturing out of China to avoid tariffs, the latest round of tariffs could be a wake-up call.
According to Investopedia, Southeast Asia—home to major production hubs like Vietnam and Thailand—is facing steep tariff hikes that might hit sellers where it hurts.
Here’s what’s happening:
- Updated tariffs by country. These are all countries where U.S. companies, including big names like Nike and Apple, have shifted their production.
- Vietnam: 46%
- Thailand: 36%
- Cambodia: 49%
- Malaysia: 24%
- The strategy of “friend-shoring”—moving production to U.S. allies—might not offer the protection sellers were hoping for. 📉
- In response, countries like Vietnam, Thailand, Cambodia, and Indonesia are in negotiations, hoping to reduce these tariffs or increase U.S. imports.
- Nike's stock takes a hit. Nike, which sources 50% of its shoes and 28% of its apparel from Vietnam, has already felt the sting. The brand’s stock dropped after the tariff announcement. 👟
👀 What sellers should watch
If you shifted manufacturing to Southeast Asia to escape China’s tariffs, you might want to rethink your strategy. These new tariffs could throw a wrench in your plans.
Here's what to keep your eyes on:
- Negotiations: Will Southeast Asian countries strike deals to lower these tariffs?
- Pricing and inventory: How will the tariffs impact your pricing strategy and your Q4 inventory planning?
- China +1 or none: Will the “China +1” strategy backfire? Will it be “China + none” if countries like Vietnam and Thailand are hit hard?
This tariff shift could cause a ripple effect in global supply chains—especially for Amazon sellers. Keep close tabs on your freight forwarder and, more importantly, your profit margins. 💡
CASH CORNER
Etsy protects sellers against tariff disputes and delays
International selling just got a little less stressful for Etsy sellers. If you’ve been worried about how tariffs and duties could affect your sales, Etsy’s got your back.
According to eCommerceBytes, Etsy is stepping up to protect sellers in situations where buyers refuse to pay tariffs on their orders.
🛡️ How Etsy will protect its sellers
- You won't be held responsible for tariff-related delivery issues.
- Etsy’s Purchase Protection program ensures that sellers are not liable for refunds if a buyer refuses or delays paying tariffs.
- Buyers get the heads-up when their purchases may be subject to tariffs or import fees.
- This helps prevent surprises at checkout and minimizes disputes with buyers. 📢
- You decide where to ship.
- You can choose to ship domestically only or select other shipping preferences that work for your business model.
💲 More clarity on shipping & tariff costs
Etsy’s FAQs now cover important topics like whether shipping rates include tariffs (hint: they usually don’t).
Make sure you're aware of how to adjust your pricing to accommodate international fees. 🛒
HOT TOPIC
China-based suppliers allegedly offer illegal fixes to lower tariff costs
As if navigating tariffs wasn’t complicated enough, now some Chinese suppliers are offering U.S. Amazon sellers a so-called "easy fix" to lower their import duties as reported by Fortune.
While it might sound like the answer to your cost problems, the solution comes with serious risks—legal ones.
🍵 The "solution" that's a federal crime
Some China-based suppliers are offering solutions that involve breaking the law, including:
- Undervaluing goods on commercial invoices to lower import duties.
- Delivery Duty Paid (DDP) shipping, where the supplier takes over the customs process and falsifies the value of goods to reduce duties.
- Suppliers even admitted they’re already using these methods for other competitors.
🚨 Sellers sound the alarm
These tactics come with serious consequences, including:
- Customs fraud is a federal crime under U.S. law.
- Getting caught can result in heavy fines, penalties, or even criminal charges.
- Small businesses are especially vulnerable, as they may not fully understand the legal risks involved.
Sellers are now warning others to steer clear of these illegal practices. The risks of trying to save a few bucks on duties can easily outweigh any short-term benefits.
What do you think of this 'easy fix'?
