Kristina Roberts
Amazon is contacting small and medium-sized sellers in the US to understand how new tariffs (extra taxes on imported goods) introduced by former President Donald Trump are impacting their businesses. The company wants to know if these taxes are making it harder for sellers to source products, set prices, or ship goods to Amazon warehouses.
What’s Happening?
Amazon recently sent emails to some US-based sellers asking them about their experiences with the new tariffs. The email said:
“I wanted to open a discussion about the current U.S. tariff situation and how it’s affecting our businesses on Amazon, particularly in terms of logistics. As of April 2025, we’re still dealing with the repercussions of various tariff policies, and I believe it’s crucial for us that you share current experiences and strategies.”
This shows that Amazon is trying to figure out how much trouble sellers are facing because of these taxes.
Why Are Tariffs a Problem?
Tariffs are extra charges that the US government puts on goods coming from other countries. Recently, Trump announced new tariffs, especially on products from China. At first, the taxes were very high, but later, they were reduced to 10% for most countries. However, China still faces much higher tariffs—up to 125% on some goods.
Since many Amazon sellers buy products from China, these extra costs could hurt their businesses. Some sellers say they might have to increase prices, while others fear they could go out of business if the tariffs stay for too long.
What Amazon’s CEO Says
Andy Jassy, Amazon’s CEO, recently spoke about the issue. He said:
“I understand why, I mean, depending on which country you’re in, you don’t have 50% extra margin that you can play with.”
This means that many sellers don’t have enough profit to absorb the extra costs, so they might have to charge customers more.
How Are Sellers Reacting?
Some sellers told CNBC that they are trying not to raise prices right away because they want to stay competitive. However, if the tariffs continue, they may have no choice but to increase prices or shut down their businesses.
Amazon has also canceled some orders from Chinese suppliers, especially in home goods and kitchen accessories. Some vendors had products ready to ship, but Amazon suddenly canceled their orders, leaving them with unsold stock.
Impact on Amazon’s Business
Amazon’s stock price has dropped by 18% this year, while the Nasdaq (a major stock market index) has fallen by 13%. This shows that investors are worried about how tariffs and other economic changes will affect Amazon’s growth.
Since most products sold on Amazon come from third-party sellers (small businesses, not Amazon itself), any problems they face could also hurt Amazon’s overall sales.
What Happens Next?
If tariffs stay high, sellers may have to:
- Increase prices – Customers may have to pay more for products.
- Find new suppliers – Some sellers might look for manufacturers outside China to avoid tariffs.
- Reduce profits – If they can’t raise prices, their earnings could shrink.
Amazon is likely to keep talking to sellers and possibly even lobby the government to reduce tariffs if they hurt business too much.
Amazon is checking in with its sellers to see how much Trump’s tariffs are affecting them. Many small businesses rely on Chinese products, and the extra taxes are making things difficult. Some may have to raise prices, while others could struggle to survive. Amazon’s CEO has admitted that this is a big challenge, and the company’s stock price has already taken a hit.
For now, sellers are trying their best to adapt, but if the tariffs stay high, both businesses and customers could feel the pain.
