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80/20 of Ecom: 10% Baseline Tariffs, IRS Tax Credit, and Amazon Shipping Changes 4/4/2025

Don’t Miss This – Get the Inside Scoop on Tarrif's + Tax Rebates + 7FSS10 Updates for you!

Author

Gary Huang
April 04, 2025

80/20 of Ecom –April 4, 2025

Hey everyone,

As we dive into April, it’s essential to stay ahead of the latest updates that could impact your business. From potential tax credits with the IRS to significant shifts in shipping from China, these changes will directly affect your bottom line. With tariffs coming up and shipping changes rapidly approaching, now is the time to take action.

I’m also exploring powerful tools for selling on Amazon Japan to help you unlock new opportunities and streamline your operations. Let’s make sure you’re prepared for what’s ahead!

Let’s get into it in this week’s 80/20 of Ecom 👇

  • Trump’s 10% Baseline Tariff: Key Insights for Amazon Sellers

  • IRS Could Owe U.S. Sellers Up to $32K – Act Before 4/18/25

  • De Minimis Shipping from China Ends in May – What Amazon Sellers Should Prepare For

  • Selling on Amazon Japan: Discover New Tools and Features for Success"

  • 7Figure Seller Summit 10 - Waitlist is NOW OPEN!

President Trump has implemented a 10% baseline tariff on all imports effective May 15, 2025, with additional targeted duties on specific countries: China (60% total), Japan (25% total), EU (20% total), and Vietnam (25% total). Mexico, Canada, and India also face increased tariffs of 15-20% on certain categories. This significant policy shift is already disrupting global supply chains and driving up sourcing costs.

Trump's new "reciprocal trade" policy imposes tariffs according to each country's own import duties, with the stated goal of reducing the U.S. trade deficit, which reached $773.4 billion in 2023. According to Commerce Secretary Vance, imports from China, which accounted for over 14% of all U.S. imports last year, will be particularly hard hit with the highest rates.

President Donald Trump waves to a crowd at the White House on April 2, 2025. The president signed two executive orders on Wednesday, including one implementing a universal tariff of 10%. Andrew Harnik via Getty Images

Key Implications for Amazon Sellers: 
✅ Immediate Cost Increases: Products imported after May 15 will incur the new tariffs, directly impacting your margins by 10-60% depending on country of origin.
✅ Action Required: Consult your Customs broker and freight forwarder immediately to understand your specific exposure.
✅ Grandfather Clause: Products shipped before May 15 will be exempt from new tariffs, regardless of arrival date.
✅ Supply Chain Strategies: Consider nearshoring to Mexico for 5% lower effective tariffs than Asian alternatives, or explore domestic manufacturing options.

Pro Tip: Run a country-of-origin analysis across your product catalog to identify your highest-risk SKUs and prioritize your mitigation efforts accordingly. The National Retail Federation estimates these tariffs could cost the average American household an additional $1,700 annually in higher prices, which may impact your customers' purchasing power.

Public Service Announcement - Did you know that many US Amazon sellers, 1099 contractors, and gig workers qualify for a federal tax credit worth up to $32,220—but most have no idea it exists? 

This Sick Leave & Family Leave (SLFL) Tax Credit is a refund, not a loan, and the deadline to claim it is April 18, 2025.

We’re seeing rebate checks being made for $7,200 on average if they qualify. (YMMV)

📺 Watch the webinar replay to learn how to check your eligibility in minutes and claim your refund before it’s too late! 👉 Watch Now

No time to watch?  Fill out the application form from our partner Lendesca to check your eligibility now: https://setc.lendesca.com/application/?refid=GH7295

Starting in May, the de minimis shipping threshold from China will be eliminated, meaning low-value shipments will face increased scrutiny, potential delays, and higher import costs. Other countries may also be affected, adding uncertainty for e-commerce businesses that rely on direct imports.

A police officer walks during a news conference at the U.S. Custom House on June 21, 2019 in Philadelphia. The U.S. is targeting the de minimis exemption in orders issued under the Trump administration. Eduardo Munoz Alvarez via Getty Images

 Key Takeaways for Amazon Sellers:
 ✅ Expect Higher Costs: Small shipments from China may now incur duties and taxes.
✅ Prepare for Delays: Stricter customs checks could slow down fulfillment times.
✅ Review Compliance: Ensure your import procedures meet new regulations.
✅ Explore Alternatives: Consider sourcing from different suppliers or adjusting shipping methods.

I recently covered Amazon Japan, the number two biggest marketplace in the world, even if you don’t speak Japanese. Recently, Helium 10 has announced a number of new features for Amazon Japan, including Saribo, X-ray, and even AI translation of Japanese into English.

If you’re interested in selling in Japan, definitely check out the tutorial I created.
By the way, if you'd like to test it out yourself, check out the offer for Helium10 below.

Watch the Helium 10 tutorial to learn how to navigate Amazon Japan and leverage new tools!

7 Figure Seller Summit 10 - Waitlist!

The Seven Figures Summit 10 will be held online from April 22nd to 24th. Doors will open soon for registration, so sign up now for the waitlist to be the first to know when we launch!

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-Gary

P.S. The AI for Ecom Sellers survey only takes 2 minutes, and your feedback will directly shape the AI training and strategies I share. Take the survey now! 🚀