Navigating New Tariffs: Challenges and Strategies for Amazon Sellers Importing to U.S. Prep Centers

The U.S. government’s steep taxes on Chinese imports, which include the removal of the de minimis exemption for goods under $800, present major challenges for Amazon sellers in 2025. These modifications have caused supply chains to break, raised prices, and compelled vendors to reconsider their approaches.

What is de minimis? In the context of international trade, “de minimis” refers to the threshold value below which imported goods are exempt from certain duties and taxes. This means that items valued below a certain amount can enter a country without being subject to tariffs or other import charges. 

The Tariff Challenge

The U.S. has ended the de minimis exemption for Chinese imports, meaning packages valued under $800 from China are now subject to tariffs—as high as 145%. This move particularly impacts Chinese e-commerce platforms such as Shein, Temu, AliExpress and Alibaba, as well as U.S. companies/sellers like Amazon that utilize Chinese suppliers.

Many sellers, who import their products from China, now face tariffs that exceed the value of their shipments, threatening to close many businesses.

Strategies to Overcome Tariff Obstacles

1. Diversifying Supply Chains

Sellers are exploring alternative manufacturing hubs in countries like Vietnam, India, and Mexico to mitigate tariff impacts. This “China Plus One” strategy helps reduce reliance on Chinese suppliers.

Our friends over at AMZPrep noted the following if you are trying to switch your manufacuring out of China:

– Vietnam: Already at capacity, 12+ month waitlists
– Mexico: Skilled labor shortages, limited electrical component manufacturing
– India: Strong for textiles, weak for precision components
– Eastern Europe: Strong capabilities but higher costs

2. Partnering with Third-Party Logistics (3PL) Providers such as McKenzie Services

Engaging with experienced 3PLs can help sellers navigate tariff complexities. These providers assist with accurate product classification, optimize shipping routes, and offer warehousing solutions to manage inventory effectively.

3. Leveraging Trade Agreements

Utilizing trade agreements like the United States-Mexico-Canada Agreement (USMCA) can offer tariff exemptions for certain products. Sellers are working with 3PLs to identify opportunities under such agreements.

4. Optimizing Inventory Management

Sellers can prevent overstocking or stockouts by using tools that predict demand and modify stock levels. This strategy lowers the danger of abrupt tariff changes and minimizes storage expenses. Here are a couple companies that help manage your inventory levels:

• RestockPro by eComEngine

  • Focus: Amazon FBA inventory forecasting and restocking.

  • Features: Reorder suggestions, supplier management, and profitability tracking.

  • Best for: FBA sellers who want automated, data-driven replenishment.

• SoStocked

  • Focus: Customizable forecasting and inventory control.

  • Features: Dynamic dashboards, buffer stock, and seasonality adjustments.

  • Best for: Scaling Amazon sellers who want detailed control over restock timing.

5. Exploring Alternative Sales Channels

To reduce dependence on Amazon, sellers are expanding to platforms like Walmart Marketplace and establishing direct-to-consumer (DTC) websites. This diversification helps maintain sales volumes amidst Amazon-specific challenges.

If you are looking to expand and not put all your eggs in the Amazon basket, let us know! McKenzie Services is here to help with all of your company growth needs.

Conclusion

Unquestionably, the increased tariffs have made things more difficult for Amazon merchants that import to prep centers and Amazon warehouses in the United States. Sellers can overcome these obstacles and continue to be profitable, though, by diversifying their supply chains, collaborating with experienced logistics companies, utilizing trade agreements, maximizing inventory, and investigating alternate sales methods.