Amazon Tariffs: How Import Taxes Affect What You Buy and Sell Online

Understanding Amazon Tariffs: What Shoppers and Sellers Need to Know

Amazon is one of the largest online marketplaces in the world. It sells millions of products to people across many countries. But behind the scenes, buying and selling on Amazon can be affected by something called tariffs. These are extra taxes that governments place on goods coming into a country. This article explains what Amazon tariffs are, how they affect buyers and sellers, and what you should know if you shop or sell on Amazon.

What Are Tariffs?

A tariff is a tax that a government charges on goods imported from other countries. For example, if a company in China makes phone cases and sells them to customers in the United States through Amazon, the U.S. government may charge a tariff on those phone cases.

Tariffs are used for many reasons. Sometimes they help protect local businesses from foreign competition. Other times they are used during trade disputes between countries. Tariffs can increase the cost of goods, which is why they are important for both buyers and sellers to understand.

How Tariffs Affect Amazon Sellers

Amazon sellers who import products to sell in another country must often pay tariffs. This can raise their costs. For example, if a seller buys toys from overseas to sell on Amazon in the U.S., the seller might pay a 10% tariff on each toy.

This means that if a toy costs $5, the tariff would add 50 cents. If the seller wants to keep the same profit, they might increase the price of the toy for buyers. If they don’t raise the price, they earn less money.

Tariffs can also cause delays. Products might be held at customs while officials check if tariffs have been paid. This can slow down shipping times, which can lead to customer complaints or bad reviews on Amazon.

How Tariffs Affect Amazon Buyers

Most buyers do not see tariffs directly. They are not charged a separate tariff fee when they check out. But if a product has a high tariff, the seller usually raises the price. So, the buyer ends up paying more.

Also, if there are fewer sellers importing certain products because of high tariffs, buyers may find fewer choices on Amazon. Prices may go up because of lower supply.

In some cases, if a buyer orders a product from another country directly (called international shipping), they may be responsible for paying the tariff themselves. Amazon often tells buyers during checkout if there will be extra import fees.

U.S.-China Trade and Amazon Tariffs

One major example of tariffs affecting Amazon is the trade war between the U.S. and China that started in 2018. The U.S. placed tariffs on hundreds of Chinese products. Many of these items were sold on Amazon, including electronics, tools, home goods, and toys.

As a result, many Amazon sellers who bought goods from Chinese factories had to pay more in tariffs. Some sellers increased their prices, while others stopped selling certain items. Buyers noticed higher prices, especially on items that used to be cheap.

In 2023 and 2024, some of these tariffs remained in place. U.S. officials said they were reviewing them but had not removed most of them. Sellers are still being affected today.

What Sellers Can Do About Tariffs

Sellers on Amazon try different ways to reduce the impact of tariffs. Some look for suppliers in countries that do not have high tariffs. Others try to make or assemble products in the U.S. to avoid import taxes.

Some sellers try to ship their products directly to Amazon warehouses in the country where the customers are. This can lower shipping and customs costs. But this requires more planning and money.

Many sellers also study tariff codes and rules to see if their products can be placed in lower-tax categories. This is legal, but it must be done carefully and honestly.

Conclusion

Amazon tariffs are an important part of global trade. They affect how products are priced, shipped, and sold. Buyers may not always notice them, but they can lead to higher prices and fewer choices. Sellers need to stay informed about changing trade rules so they can manage costs and stay competitive.

Whether you shop or sell on Amazon, it helps to understand how tariffs work. They are not just a business issue — they shape