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- 80/20 of Ecom: BREAKING: White House Sends Tariff Deal Proposal to Beijing – 5/9/25
80/20 of Ecom: BREAKING: White House Sends Tariff Deal Proposal to Beijing – 5/9/25
First talks since Trump took office; what sellers need to prepare for now
Gary Huang
May 09, 2025
Hey guys,
The big players are heading to Switzerland this weekend. Chinese Vice Premier He Lifeng and US Treasury Secretary Scott Bessent and Trade Rep Jamieson Greer.
First real sit-down meeting since Trump took office.
Look, we all know what's at stake here. Trump slapped tariffs up to 145% on Chinese goods. China hit back with 125% on US goods. Your margins are getting squeezed.
And let's be real - this isn't getting resolved over coffee. We're looking at "several months" of negotiations with plenty of "back and forth." Translation: More uncertainty for your business.
Meanwhile, the hits keep coming:
Feds are cracking down HARD on sellers using sketchy tariff workarounds
That de minimis loophole for China shipments? Gone. Air cargo is a mess.
UPS is cutting 20,000 jobs while Amazon dumps $4B into rural delivery
Bottom line: If you're still using last quarter's playbook, you're in trouble.
That's why this week's newsletter is all about protecting your profits without risking jail time.
And why I'm telling you not to miss Chris Rawlings' PPC Workshop next week - seriously, it's going to deliver.
Let’s break it all down in this week’s 80/20 of Ecom 👇
Tariff Loopholes or Legal Landmines?
LAST CHANCE: The 14-Day Tariff Profitability Challenge Starts Monday
De Minimis Crackdown: Storm Brewing in Air Cargo
Amazon’s $4B Bet on Rural Delivery
UPS Slashes 20,000 Jobs Amid Amazon Split
Mastering Amazon PPC: One-Day Workshop with Chris Rawlings
As tariffs rise, some Amazon and Shopify sellers are being misled by “industry hacks” that are actually federal crimes. Tactics like under-declaring invoice values, falsifying country of origin, or misclassifying goods can lead to audits, massive fines, and even prison time.
My recent LinkedIn post is sparking serious discussion — 72 comments, 11 reposts, and 10,160 impressions — and for good reason.
➡️ Read the full post: These "Tariff Workarounds" Could Land You in Federal Prison
Meanwhile there’s a smarter, legal way to protect your profits.
Is your ecom business running with "No Effing Profit" because of these tariffs?
While your competitors panic and exit the market, the smart sellers are using these tariffs as a MASSIVE OPPORTUNITY. In fact, this may be the biggest profit opportunity since COVID reshaped ecommerce.
During this 14-day sprint, you'll get the EXACT strategies that 7 and 8-figure sellers, ecom and supply chain experts are using to:
Cut and minimize tariff costs using "Tariff Engineering" strategies that save THOUSANDS (100% legal)
Strategically adjust pricing to INCREASE profit margins without sacrificing rank
Identify which SKUs to kill vs. which to double-down on (the 80/20 SKU Profit Audit)
Leverage AI to optimize for Amazon's RUFUS and steal sales your competitors don't know about
Get supplier negotiation scripts that work RIGHT NOW (beyond just begging for price cuts)
Execute proven strategies to source from Mexico, Latin America, India, Thailand, and more
REALITY CHECK: In 6-12 months, there will be 25-33% FEWER sellers on Amazon. We're already seeing Chinese brands exit in droves.
The question is: Will you be one of the casualties... or one of those who seizes this once-in-a-decade opportunity?
10X ROI GUARANTEE: I'm so confident this will work for your business that I've put a 10X ROI guarantee on it.
Are the Trump tariffs and ongoing supply chain risks forcing you to rethink your sourcing strategy?
That’s why I invited Susana Bermudez, the Alibaba of Mexico who has a directory of over 10,000 suppliers, to give a live training on how to source from Mexico
Susana has successfully guided a number 7- and 8-figure brands in shifting their supply chains from China to Mexico—resulting in lower tariffs, faster lead times, and improved profitability.
Susana Bermudez, Mexico’s leading sourcing expert
Join us LIVE next week to get your questions answered
How to Shift Your Sourcing from China to Mexico
📅 Date: Thursday, May 15
🕓 Time: 5:00 p.m. EST / 6:00 a.m. JPT (May 16)
The elimination of the de minimis exemption for low-value shipments from China and Hong Kong is set to jolt the air cargo and e-commerce landscape. Effective May 2, U.S.-bound parcels under $800 are now subject to steep tariffs and surcharges, ending a key cost-saving loophole for cross-border sellers.
According to Xeneta, this seismic policy shift is already causing freighter flight cancellations and capacity shakeups, with a sharp rise in spot rates seen in April as shippers rushed to beat the deadline. The traditional airfreight market won’t absorb the full blow, signaling a redistribution of global cargo capacity and new logistical headaches for carriers.
What this means for e-commerce sellers:
Expect higher shipping costs and added customs complexity.
Fulfillment strategies may need a revamp, especially for China-to-U.S. lanes.
Tariffs may outweigh lower air freight rates, straining margins.
Stay agile and revisit your international shipping game plan. This isn't just turbulence—it's a route overhaul.
🔗 Read more
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Boosting up review rate
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Completely automating the process
Amazon is committing $4 billion by 2026 to supercharge delivery speeds and coverage across rural America. The move will triple the size of its rural delivery network, enabling the company to reach over 13,000 ZIP codes across 1.2 million square miles—a territory the size of Alaska, Texas, and California combined.
The expansion includes over 200 new delivery stations and is expected to enable 1 billion more package deliveries annually in hard-to-reach areas. This comes as carriers like UPS and USPS scale back rural services due to high costs, creating an opening for Amazon to dominate the last mile in underserved markets.
“Amazon has a massive advantage over UPS and FedEx,” said parcel analyst Nate Skiver, citing the company’s ability to increase delivery volume and reduce per-package costs.
Why this matters for Amazon sellers:
Improved rural reach and delivery speeds could boost sales in small towns.
Same-day and overnight delivery capabilities may soon extend beyond major metro areas.
FBA sellers stand to benefit from more efficient fulfillment and reduced delivery times nationwide.
🛍️ Takeaways for Sellers:
Capitalize on Expanded Reach: More rural buyers will gain access to faster shipping—optimize listings and ads to target underserved regions.
Evaluate FBA Advantage: Faster delivery in rural areas boosts FBA’s value proposition versus FBM—especially for Prime-eligible products.
Watch for Rate Adjustments: Greater Amazon delivery coverage may reduce reliance on third-party carriers, possibly influencing shipping and surcharge costs.
Stay Competitive: Walmart is also investing in rural delivery—consider multi-channel fulfillment strategies to maintain an edge.
UPS is undergoing a massive transformation in 2025, announcing plans to eliminate 20,000 jobs and close 73 facilities by the end of June as part of what CEO Carol Tomé calls the company’s "largest network reconfiguration in our history." The moves come in response to Amazon’s ongoing shift away from UPS, as the e-commerce giant continues to build out its own delivery infrastructure.
UPS has already seen a 16% year-over-year drop in Amazon volume in Q1, with further double-digit declines expected through the rest of the year. The reductions target outbound packages shipped directly from Amazon fulfillment centers—deliveries UPS now considers unprofitable and misaligned with its network strategy.
The company’s restructuring is part of its “Network of the Future” initiative, aimed at streamlining operations and boosting automation. With $3.5 billion in cost savings expected for 2025, UPS is prioritizing automated hubs, which now handle 64% of its volume.
“This isn't just about trimming costs—it's a full-scale reset to match a changing logistics landscape,” said Tomé.
🔍 Key Highlights:
20,000 job cuts planned across the U.S. network in 2025.
73 UPS facilities will shut down by end of June.
Amazon volumes to decline by 50% by mid-2026; UPS says these shipments are not profitable.
$3.5B in projected cost savings from the reconfiguration.
Automated sortation hubs now handle 64% of UPS volume (up 4.5% YoY).
Smaller shippers may face rerouting to UPS Stores or Access Point locations.
🚚 Takeaways for Amazon Sellers:
Expect service adjustments: If you rely on UPS, be aware of potential changes to delivery schedules, routing, or facility access in affected ZIP codes.
Diversify your carriers: As Amazon internalizes more logistics and UPS shifts its focus, FBM sellers should consider alternatives like USPS, regional carriers, or Amazon’s own shipping services (e.g., Buy Shipping).
Monitor rate changes: UPS may adjust pricing to offset network consolidation costs or to rebalance volume. Keep a close eye on surcharges or service area changes.
Leverage FBA: With Amazon taking on more of its own delivery, FBA users may experience more consistent service—particularly in rural areas amid Amazon’s expansion (see related rural delivery update).
Most sellers are bleeding money on Amazon PPC — and the reason is surprisingly simple. After launching 2,500+ products, 7 Figure Seller Summit Alum Chris Rawlings has cracked the code to turn unprofitable campaigns into revenue engines.
Now he’s pulling back the curtain in a one-day Profitable PPC Workshop on May 14 from 12 PM to 1:30 PM EST, with bonus office hours until 2:30 PM.
And here's the kicker: He’s saved 25 exclusive seats just for my audience — and 200+ sellers are already in.
💥 BONUS Session: “How to Use PPC to Combat Tariff Challenges” — a perfect add-on to our ongoing series on legally navigating rising import costs.
🔗 Reserve your seat now: ppcworkshop.sophiesociety.com
Seats are going fast — grab yours before they're gone!
📌 In Case You Missed It
✅ Amazon sellers skipping Prime Day promos over tariffs (First time ever)
✅ Ready to Stop Thinking About AI Automation and Start Building It?
✅ What the U.S. Imports from China—and Why It Matters More Than Ever for eCommerce Sellers
📩 Want to be Featured in the 80/20 of Ecom Newsletter?
I work with brands and sellers to help them grow, scale, and succeed. Here’s how we can work together:
💼 Sponsorships – Promote your service to 13,000+ engaged e-commerce sellers.
🎯 Consulting – Get tailored strategies for Amazon Japan, sourcing, or profitability.
🤝 Partnerships – Let’s collaborate on webinars, content, or events.
📩 Contact me: gary [at] 8020sourcing.com
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-Gary
P.S. With US-China trade talks happening right now, there's never been a more critical time to get your tariff strategy right. Our Tariff Profitability Challenge starts Monday, and doors close Sunday night.