Overview

The Trump administration’s latest tariff package pushes combined duties on Chinese‑origin goods to roughly 145%, a level not seen in almost a century. Amazon third‑party sellers who rely on Chinese factories now confront steep cost hikes, forcing many to raise prices or consider abandoning the U.S. marketplace altogether.

Key Points

• Combined tariff reaches 145% — A 125% retaliatory duty sits atop a 20% fentanyl‑related levy, creating the highest import tax burden in decades.
• Temporary 30% relief — A negotiated pause lowers the rate to 30% beginning mid‑2025 and extending through 2026, but the full 145% could return afterward.
• Average price jump of 29% — Monitoring tools have flagged more than 930 listings across apparel, electronics, toys and home items that now sell for nearly a third more than before.
• De‑minimis exemption removed – The previous $800 duty‑free threshold for low‑value shipments has been eliminated, hitting high‑volume, low‑margin sellers hardest.
• Seller cost‑pass‑through confirmed – Amazon’s chief executive has stated that third‑party merchants lack sufficient margins to absorb the tariffs, so consumers will ultimately see higher prices.

What's Changing

1. Tariff stacking — A 125% counter‑tariff is added to the existing 20% fentanyl duty, so a $100 Chinese‑made widget now incurs $145 in taxes before it reaches the Amazon fulfillment center.
2. Mid‑term reduction — Beginning in July 2025, the combined rate temporarily drops to 30%, giving sellers a brief window to adjust pricing or explore alternative sourcing before the ceiling reopens.
3. Duty‑free threshold loss — Previously, shipments valued under $800 entered the U.S. duty‑free; the removal means even a $50 accessory now faces the full tariff, eroding profit on small‑ticket items.

Context Section (optional)

• Before: A seller importing a $25 kitchen gadget from Shenzhen paid a 20% fentanyl duty, leaving a $5 tax bill and preserving a 30% margin after Amazon fees.