Trade Tariffs and eCommerce: The Impact on Your Business [Updated April 2025]

We are stepping into unknown trade terrain this year with immense uncertainty and changes announced nearly every week. As of April 2, 2025 the current administration implemented the high trade barriers (a baseline tariff of 10%) on all imports and duties with some of the U.S’s largest trading partners. For example, China is now facing 145% tariffs on goods to the U.S. Other countries are facing a significant impact to their global trade. Additionally, consumers and sellers alike feel uncertain about the economy ahead.

If your eCommerce business relies on imports, it’s time to adapt your strategy. The U.S. government’s new 2025 tariffs will raise costs on a wide range of products, impacting supply chains, pricing, and overall profitability.  

We believe sellers succeed with data-driven insights and automation. This helps them tackle challenges effectively and quickly. This blog explains what the new tariffs mean for you and offers tips on how to keep your business profitable.  

What Are the 2025 Tariffs and Why Do They Matter?  

The new tariffs introduce:  

1. [February 2025] A 20% duty on Chinese imports, increasing costs for sellers who source their inventory from China and ending de minimis treatment of all imports from China.  

2. [February 2025] A 25% tariff on goods from Canada and Mexico, affecting North American supply chains.  
3. [April 2, 2025] A 10% baseline tariff on all imports. With reciprocal tariffs ranging from 10% and 50% on some of the U.S’s biggest trading partners.
4. [April 2, 2025] An added 34% reciprocal tariff on China.
5. [April 7, 2025] After China has hit the U.S. back with 34% levies, President Trump has stated that he will retaliate with an additional 50% tariffs on China making the total over 100%.
6. [April 9, 2025] Reciprocal tariffs have been paused for 90 days for over 75 countries. Many of these countries have responded with a pause on their own retaliatory tariffs. A base tariff, however, will remain at 10% as announced last week.
7. [April 9, 2025] Tariffs imposed on China have increased to a total of 145% as President Trump doubles down on a trade war.

These tariffs target trade imbalances. However, for eCommerce sellers, they are likely to cause higher product costs, disrupt supply chains, and squeeze profit margins.  

How These Tariffs Will Affect Amazon and eCommerce Sellers  

1. Rising Product Costs and Profit Margins  

If your private-label products or wholesale inventory come from China, Vietnam, Canada, or Mexico (among others), expect increased costs per unit. Many sellers will have to either raise prices, absorb costs, or find new sourcing methods.  

2. Supply Chain Disruptions and Delays  

Suppliers in affected regions may adjust pricing, relocate production, or experience delays, making inventory planning more complex than ever. If you don’t forecast demand and manage your inventory, you may face stock shortages or extra costs.  

3. Pricing Pressure and Competitive Adjustments  

Raising prices isn’t always easy. If your competitors can handle the costs or find cheaper sources, you might lose your advantage. Monitoring competitors and keeping a flexible pricing strategy will be key. 

Bradley, Helium 10’s Senior Director of Education and Strategy suggests, “As a seller who manages over 100 products on Amazon, I am not planning on raising any prices yet until I start paying the higher fees or unless I see competitors raise prices. One tactic that will save you is to make sure you add your competitors to Insights Dashboard tracking and turn notifications on for price changes.”

Helium 10 Members are Actively Discussing Ways to Prepare

Example: Impact on the Toy Industry

Consider a toy retailer that imports products from China.
• Previous Cost: A toy that costs $10 from a Chinese supplier.
• Tariffs Applied: With the new 44% tariff (10% baseline + 34% China-specific), the additional cost due to tariffs is $4.40.
• New Cost: The total cost for the retailer becomes $14.40 per toy.

How eCommerce Sellers Can Prepare for the 2025 Tariffs  

1. Diversify Your Sourcing Strategy  

To minimize tariff-related costs, consider exploring alternative suppliers in non-affected countries such as Vietnam, India, or domestic U.S. manufacturers. This can help reduce dependence on high-tariff regions and provide long-term cost stability.  

2. Optimize Inventory and Demand Forecasting  

Smart inventory management will be critical in 2025. Use Helium 10’s Inventory Management tool to:  

• Predict optimal reorder points to avoid stockouts.  

• Track costs and adjust purchasing strategies based on tariff impact.  

• Ensure you’re not overstocking products that will become too expensive to move.  

3. Reevaluate Pricing Models and Profitability Metrics  

If you can’t absorb tariff costs, try adjusting prices slowly. Keep an eye on how competitors react. This way, you can stay competitive. Helium 10’s Profitability Calculator can assist in:  

• Projecting new costs with tariffs included.  

• Determining optimal price adjustments without sacrificing conversion rates.  

• Understanding how much margin remains after tariff-related expenses.  

If you are planning to raise prices, keep in mind you should not do a large increase, because you might lose the buy box. Amazon will suppress buy box if you raise the price by too high of a percentage, so even if you do plan to raise it by a big amount, its best to do it incrementally. If you are worried about Amazon taking your buy box away, make sure you have alerts active on your ASINs you receive a notification if that happens.

4. Stay Informed and Watch for Trade Policy Updates  

Tariff rates and trade policies are always subject to change. Keep track of government announcements, supplier prices, and import/export rules. This helps you adjust your strategies ahead of time.  

5. Review Tariff Classifications for Cost-Saving Opportunities  

Incorrect tariff classifications can lead to unnecessary fees. If your products are in borderline categories, talk to a trade expert. They can help you avoid paying too much in duties.  

Stay Proactive, Stay Profitable  

While tariffs may introduce new challenges for eCommerce sellers, they also present opportunities for those who plan strategically and adapt early. Sellers can stay ahead in a fast-changing market by diversifying suppliers, optimizing inventory, and monitoring pricing trends. They can also use AI-powered advertising and profitability tools to stay competitive.  

We help sellers with inventory forecasting, ad optimization, and profit tracking. With our suite of tools, we can help you tackle challenges like rising tariffs, supply chain issues, and higher costs.  

Want to future-proof your business against rising costs? Start using Helium 10 today to optimize your inventory, pricing, and ad strategy.