Imagine waking up to find profit margins cut in half. A reliable $10 product now costs $24.50 to import—overnight.
This is exactly what’s happening right now to many sellers because of the new 145% tariff hike on Chinese imports. But sellers don’t have to just sit there and take it.
Here are the six steps smart sellers are using to save thousands of dollars in tariffs right now.
In this article sellers will learn:
- How to find out if ASINs are vulnerable
- How to renegotiate prices using China’s weakening RMB
- Easy ways to cut COGS (like removing unused accessories)
- Why now’s the time to expand to Japan, EU, or Australia
- How to use AI pricing tools like Profasee
- Why customs fraud is a trap—and how to stay compliant
Table of Contents
Know Your Exposure
The first step is determining how many ASINs are sourced from China. If it’s more than 5%, sellers are extremely vulnerable.
Smart sellers track this data in spreadsheets or seller dashboards—there are plenty of tools available to help monitor exposure.
Negotiate With Your Suppliers
Many sellers are starting conversations with suppliers about pricing. They negotiate for better rates, improved terms, or even pause and cancel orders, especially for low-margin SKUs.
One powerful lever sellers can pull is the RMB (Chinese Yuan). Since China is devaluing its currency to make products cheaper, sellers have more negotiating power. Many sellers who haven’t renegotiated prices in the past few years can leverage the Yuan’s 6% drop, with further declines expected.
Optimize Everything
I know many sellers have products with extra bundled items that customers don’t actually value. Now’s the time to eliminate those extras. Removing unnecessary bundles can save several dollars immediately.
Sellers can also evaluate product materials and find ways to reduce manufacturing costs. Remember, every penny cut saves two pennies with the 145% tariffs.
Product listings should also be optimized. AI tools can help create better images, product titles, and keywords to boost conversion rates.
Diversify Your Sourcing
Many sellers are shifting manufacturing out of China to countries like Mexico, India, and Vietnam. While this takes time, it significantly reduces risk. Major companies like Apple and Nintendo have already made this move to Vietnam and Cambodia.
Expand to New Marketplaces
Smart sellers are exploring other marketplaces beyond Amazon US. Amazon Europe and Amazon UK are massive opportunities. Amazon Japan is the second-largest Amazon marketplace, yet most sellers aren’t even considering it.
Chris Davey, a seven-figure seller I spoke with, is doing exactly this. He’s scaling back US sales and ramping up in the EU, UK, and Canada through NARF fulfillment. This strategy helps him avoid the 145% tariff that could make US business unprofitable.
Adjust Your Pricing Strategically
I know many sellers are hesitant to raise prices, but AI tools like Profasee can help adjust pricing based on specific goals—whether sellers want to improve rankings, increase profits, or stay competitive.
The key is avoiding blind price increases. Data-driven tools help sellers make strategic adjustments that absorb these tariff impacts.
Bonus Tip: Avoid Customs Fraud
I see many people discussing under-declaring shipments, and suppliers are often eager to help with this. Whatever sellers do, they shouldn’t under-declare shipments. This is customs fraud, and US Customs and Border Patrol is cracking down hard. They even offer rewards for people who report violations.
Sellers shouldn’t risk their entire business to save a few dollars through illegal shortcuts.
Video
For a more in-depth discussion about this topic, watch my video below or on YouTube by clicking here.
Conclusion
Sellers can either absorb the hit or be proactive like successful seven-figure sellers.
Here are the 6 strategies to beat the tariff hike:
- Know your exposure and track China-sourced ASINs
- Negotiate with suppliers using the weakening RMB
- Optimize products by removing unnecessary bundles and materials
- Diversify sourcing to Mexico, India, and Vietnam
- Expand to new marketplaces like Japan, EU, and UK
- Adjust pricing strategically with AI tools like Profasee
As the saying goes, with crisis comes opportunity. One door closes, and another opens. Now is the time to act.