Amazon Sellers: What the 90-Day U.S.-China Tariff Cut Means for Your Margins

A Temporary Break in the Tariff Storm

In a surprise development on May 12, 2025, the United States and China agreed to temporarily slash tariffs by more than 50% for 90 days. While the move is being positioned as a goodwill gesture during ongoing trade negotiations, Amazon sellers importing from China are eyeing this brief window as a major opportunity—and a ticking clock.

The big question: What should you do before this window closes in August? Let’s break down what changed, how it affects your FBA margins, and the moves you can make right now to take advantage.

What Just Happened: The 90-Day Tariff Truce

On the heels of tense trade talks, both governments agreed to reduce existing tariffs on a range of goods by half. The agreement applies to categories like:

• Consumer electronics
• Machinery and components
• Industrial materials

The cuts are immediate and apply to shipments landing between May 12 and August 2025. After that, unless a new deal is reached, tariffs will revert to previous rates.

📌 This follows the April 2025 hike that saw new baseline tariffs introduced across most import categories. This truce is temporary relief—not a full reversal.

🔍 Source: Yahoo Finance

Why This Matters for Amazon Sellers

If you’re sourcing products from China (and many private label or white-label sellers still are), this 90-day window can unlock:

• Improved profit margins on affected ASINs
• Room for competitive pricing on crowded listings
• Short-term restock savings on large inbound orders

For high-volume FBA sellers, even a 5–10% landed cost reduction could shift your reorder strategy, ACoS targets, and pricing flexibility.

What You Should Do During the 90-Day Window

1. ✅ Audit Your Affected SKUs

Start by reviewing your import history. Which of your ASINs fall under the categories impacted by the tariff cut? You’ll need:

• Product HS codes
• Recent invoices
• Landed cost breakdowns

Use this to calculate potential savings per unit.

2. 📊 Run Profitability Models

Use Seller Labs’ SKU Economics app to model new margins under the adjusted tariff rates. Even minor changes can shift:

• Break-even ACoS
• Sale price thresholds
• Promotional strategy viability

3. 🚢 Expedite Key Shipments

With a defined end date, it pays to import sooner rather than later. Consider:

• Consolidating shipments
• Paying extra for faster ocean freight
• Prioritizing your most profitable SKUs

If you can get inventory landed by mid-July, you’ll avoid the August tariff reset.

4. 💬 Negotiate With Suppliers

Now is a great time to reach out to Chinese manufacturers. Use this moment of “tariff breathing room” to:

• Ask for shared shipping costs
• Renegotiate MOQ or pricing
• Secure better payment terms

Your supplier likely knows this is a narrow window too—they may be more flexible.

5. 🧠 Don’t Overcommit

Tempting as it is to go all in, don’t treat this as a guarantee. August could bring the old tariffs right back—or worse.

Stick to SKUs that have:

• Consistent sell-through
• Strong product-market fit
• Resilience to margin fluctuation

6. 🔔 Stay Informed (Seriously)

This deal could extend or collapse overnight. Bookmark official customs sites, subscribe to the Seller Labs blog, or set up Google Alerts for “China tariff updates 2025.”

Seller Scenario: A Real Margin Boost

Let’s say you sell wireless charging pads sourced from Shenzhen. Previously hit with a 20% duty, your cost per unit with duties was $3.60. Now with a more than 50% reduction, it’s down to under $2.80 per unit.

That $0.80 difference per unit, multiplied across 3,000 units, gives you an extra $2,400 in margin. That could cover your next PPC campaign—or fund new inventory entirely.

Final Take: A Window, Not a Windfall

This 90-day tariff cut is a rare reprieve—but one you must act on quickly and strategically.
It’s not time to rewire your entire supply chain, but it is time to get scrappy, move fast, and pad your profits where you can.

Whether you’re an Amazon veteran or a new seller scaling FBA, this temporary policy shift can be a valuable edge—if you use it well.