Tariffs 101 for Sellers: A Simplified Guide

If you’re feeling the pressure of tariffs, you’re not alone.

With cumulative import duties on certain categories exceeding 145%, many Amazon sellers are experiencing immediate and severe margin compression, disrupted inventory planning, and constrained cash flow.

This shift in trade policy represents a change in the global cost structure that underpins many private-label and wholesale business models. Sellers now face tough decisions regarding sourcing strategies, pricing adjustments, and operational efficiency. 

With all of these immediate effects, it can be easy to fall behind on the basics. This blog is to break down tariffs for sellers who feel lost in all of the new information. We’ll share definitions, what tariffs mean for sellers, and more.

What You Need to Know About Tariffs

Tariffs are taxes placed on imported goods. If you’re importing products into the U.S. directly or through a supplier you’re paying these duties.

They’re calculated as a percentage of your product’s value and vary based on what you’re importing and where it’s coming from.

Know Your HTS Code 

Every product has a unique code under the Harmonized Tariff Schedule (HTS). This code determines your base tariff rate and any extra duties depending on the country of origin (e.g., China.)

Example: 

Say your product’s HTS code carries a base rate of 15%, and it’s coming from China (which now triggers an additional 145% under Section 301). Your total duty? 160% of your product’s value. 

Find your HTS code here: https://hts.usitc.gov 

Understanding When Tariffs Are Paid 

Tariffs are usually due at port of entry. Unless, you use a bonded warehouse or Foreign Trade Zone, which can (sometimes) let you delay payment until your goods officially enter the market. 

Why Tariffs Change 

Tariffs are political. They rise and fall based on trade disputes and election cycles. Don’t expect them to stay stable. Regardless, it is crucial to build a business that can remain flexible even in uncertain times.

The Affect of Increased Tariffs

Rising tariffs are felt across many audiences. Consumers will feel price increases in their daily life, sellers face increased costs with logistics and shipping (among many other things), exporters may feel impact with their payments or contracts, and many businesses face general uncertainty.

For sellers, tariffs impact sellers landed cost; the total expense of getting a product into your warehouse. As duties rise, so do your expenses, which means:

• Thinner profit margins
• More expensive logistics and fulfillment
• Challenging pricing decisions
• Increased pressure on inventory planning

Many private-label and wholesale sellers are having to rethink their sourcing strategies, renegotiate with suppliers, and adjust pricing models just to stay competitive.

Other Terms to Know

Duty Drawback  

Refund of tariffs if goods are later re-exported or destroyed. This is helpful for sellers to understand and ensure you are submitting refund claims if this situation arises. 

Helium 10 has a Managed Refund Service wh

Supply Chain Diversification  

A strategy to reduce your manufacturing reliance on one country rather use multiple countries to spread sourcing risk. Consider regions like Vietnam, India, or Mexico to reduce exposure to tariffs from China.

Landed Cost 
Total cost to get a product into your warehouse (product + shipping + tariffs). 

Dynamic Pricing 
Real-time pricing adjustments based on cost changes, competitor moves, or inventory levels. There are a variety of solutions to use dynamic pricing.

Next Steps

Amazon sellers are already planning for tariffs as a strategic cost factor in their business. Knowing your HTS code, calculating true landed costs, and preparing for sudden changes are now part of doing business.

Check out our Tariff Strategy Hub for the latest updates, tools, calculators, and guidance designed to help sellers navigate the 2025 landscape.