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How to Lower Tariffs and Protect Your Margins in 2025
With tariffs in flux and sourcing pressure on the rise, here’s how Amazon sellers are adapting — and what you can do to stay one step ahead.Tariffs are back in the spotlight — and with new volatility around China and shifting global trade deals, Amazon sellers need to move fast to protect profitability. In this special segment of our May Capitalism Coaching Round Table, we broke down exactly what’s happening with tariffs and what strategies are actually working right now.
Here’s your complete guide to staying profitable and supply chain-resilient.
Current Tariff Landscape 


China: Temporarily reduced from 145% → ~34% total with added fees. This “pause” is scheduled to expire August 12, 2025 unless a new deal is reached.


UK: A new trade deal now caps tariffs at 10% and strengthens IP protection for U.S. sellers.


Canada & Mexico: Standard import tariff remains at 25% for most goods.


If your business depends on Chinese manufacturing, now is the time to diversify and restructure your supply chain.

6 Actionable Tariff Strategies for Sellers
1. Negotiate with Current SuppliersMany Chinese suppliers already have partnerships or factory access in lower-tariff countries — but you won’t know unless you ask.Ask about:


Lower-cost materials or production methods


Sister factories in countries like Vietnam or India


Moving molds or partial assembly abroad


Better payment terms or bulk discounts to offset tariff costs


Build a real relationship. Suppliers are more likely to help when you treat them like long-term partners.

2. Diversify Your Sourcing CountriesIt’s no longer optional — it’s strategic risk management.Explore options in:


Vietnam


India


Bangladesh


Other low-duty zones based on your category


Use expos, sourcing platforms (like Alibaba or Global Sources), and trusted sourcing agents to run test orders. Don’t wait until you're in a pinch — secure backups now.

3. Optimize Inventory and LogisticsReducing tariff impact isn’t just about origin — it’s also about smart movement.


Store imports in Foreign Trade Zones or bonded warehouses to defer duty payments


Transship through lower-tariff countries before U.S. entry


Audit packaging and weight to lower dimensional fees and shipping costs


Bonus: These steps also increase agility during busy seasons and reduce cash flow pressure.

4. Adjust Pricing and Product PositioningTariff-related cost increases don’t always require dramatic price hikes.Instead:


Use bundles to increase perceived value


Add Subscribe & Save to drive long-term LTV


Make gradual price shifts over time


Emphasize premium features and reviews in your listing to justify price differences



5. Leverage Tariff ClassificationsNot all import codes are created equal.


Revisit your HS codes with a customs broker


Explore modifications to materials or assembly to reclassify your product


Look into country-of-origin rules that allow you to change classification via final assembly in a different country


Even small changes can significantly lower your tariff percentage.

6. Use Expert Sourcing SupportTurnKey has vetted sourcing partners who can:


Relocate production


Negotiate directly with factories