80/20 of Ecom: 125% Tariffs, Apple Airlifts iPhones, Chinese Sellers Exit | 4/11/25

80/20 of Ecom – April 11, 2025

Hey guys, this week I’m excited to announce that we’re launching 7-Figure Seller Summit 10, Ecom Sellers Strike Back.

Ecom sellers are getting hit by 125% tariffs from China, reciprocal tariffs on the rest of the world, which is resulting in skyrocketing increases of your product landing costs. In addition, we’re seeing higher fees, higher storage costs, you name it.

That’s why I’m launching the award-winning 7-Figure Seller Summit 10. You will learn how 7 and 8-Figure Sellers and e-commerce experts are reacting and surviving during these turbulent times.

In this three-day online event, April 22nd, 23rd, and 24th, you will learn:

• How to mitigate the effects of these tariffs and run your e-commerce business profitably

• The latest AI levers to move the needle in your business

• How to save time, save money, and grow your sales

• You’ll learn from the top 1% of sellers with their latest strategies and original content not available anywhere else
  

🎟️ Only at 7FigureSellerSummit.com — get your free pass for a limited time now

Trump Pauses Most Reciprocal Tariffs, Hikes China’s Further (125%)

This is unprecedented. We are in the midst of a trade war, folks. Never in our lifetimes have we seen tariffs as high as this.

In the latest round of this battle, China reacted to the U.S.—the latest round of U.S. tariffs—by raising their tariffs on U.S. products to 84%, matching Trump’s increase. Trump retaliated to China’s response by jacking up the import duty to 125% on Chinese imports.

This is more than double the price of your landed costs if you consider all of the previous tariffs added in.

Meanwhile, Trump offers an olive branch to all other countries and pauses the reciprocal tariffs and only—quote unquote—is charging a 10% baseline tariff on all other countries for 90 days.

Takeaway for Sellers: Expect significant cost increases from products sourced from China unless things change. Sellers, you have to urgently re-evaluate your sourcing, your pricing, and potentially seek alternatives.

🎮 Nintendo Freezes U.S. Launch | Apple Airlifts iPhones

Let’s see how large companies are reacting so we can learn.

Nintendo adopted a wait-and-see approach. They made an announcement to launch their Switch 2 right around the time when Donald Trump announced the reciprocal tariffs. However, Nintendo shifted their supply chain out of China to Vietnam and Cambodia, which were getting hit with 46 and 49% tariffs respectively prior to the pause.

As a result, Nintendo could not take pre-orders on their products—on their Switch 2s in the U.S.—because they were uncertain how much it would cost to land the product.

UPDATE: Now Nintendo just got breathing Room with the 90 day pause on reciprocal tariffs (only 10% baseline tariff) since production is focused in Vietnam. 

According to the Japan times "If the tariffs stay at 10%, Nintendo probably keeps pricing at $450 and just takes the hit on margin,” said Bernstein analyst Robin Zhu. "At 46% Vietnam tariffs, I expected them to raise by $50 to $100.”

Meanwhile, Apple, known for running one of the most efficient global supply chains, air-shipped four plane loads of iPhones from India to the U.S. to beat the April 9th deadline.

Chinese Sellers Hike Prices or Exit U.S. Market

Reuters reports that Chinese sellers are facing an unprecedented shock to their business right now because their margins are razor-thin.

They’re looking at two main alternatives:

Option one is to raise prices immediately. For example, Brian Miller, an American based in Shenzhen, reports that building blocks for children that sell on Amazon for $20 cost his company $3 to produce. With the new tariffs, they would now cost $7 including the tariff. Maintaining margins would require raising the price by at least 20%, and prices for higher class toys might see 50% increases, he said.

Another seller, David Fong, whose products range from school bags to Bluetooth speakers, said that he already raised prices in the U.S. by up to 30%, would lower his spending on Amazon advertising, and let his inventory fall. He’s shifting focus to Europe, Canada, and the rest of the world.

Container Rates See Uptick As Tariffs Shock Supply Chain

Container rates are going up as tariffs are shocking the supply chain. The market is reacting to the shock and uncertainty caused by these flip-flopping trade rules.

These new tariffs are directly impacting ocean freight costs, and sellers importing from Asia should budget for higher and more volatile shipping rates.

Ground Delivery Costs Projected to Climb

U.S. ground shipping costs are projected to rise through 2025 due to fuel price volatility, labor costs, and network adjustments.

Even with FedEx and UPS pushing volume-based discounts, delivery expenses continue to climb.

Takeaway for Sellers: If you’re fulfilling by merchant (FBM), budget for increased shipping costs, explore consolidation strategies, and consider negotiating rates with carriers.

💰 IRS May Owe You Up to $32K – Deadline 4/18

Public Service Announcement 🚨

If you’re a U.S.-based Amazon seller, sole proprietor, or 1099 contractor, you could qualify for a COVID sick leave tax credit of up to $32,220.

This is not a loan—this is a refund the government owes you. We’re seeing sellers get back $7,200 on average, and the deadline is April 18, 2025.

📺 Watch the training replay 

📩 Apply now via Lendesca

Takeaway for Sellers: Don’t leave free money on the table. Act now before the window closes.

📌 In Case You Missed It

✅ Helium 10 Launches Japan Tools – Big Boost for Global Sellers
✅ Replay: AI Workshop – How Sellers Are Saving 20+ Hours a Week
✅ Target Warns of Tariff-Driven Profit Pressures
✅ De Minimis Shipping from China Ends in May – Prepare Now
✅ Remote Fulfillment & Amazon Pricing Hack – Must-Know Tip

🖼️ [Insert collage of past headline graphics or article thumbnails]

Have a great weekend,

Gary

P.S. Don’t just take my word for it. Here’s what other people have to say about 7-Figure Seller Summit:

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