80/20 of Ecom: Latest Trump Tariff Silver lining for US sellers, Japan now new #2 (2/7/25)

10% additional Tariff on Chinese Imports, De Minimis Shipping from China Axed Under Trump Tariffs – What It Means for Sellers

This week the Big changes are here. 

• The de minimis exemption—which allowed small-value shipments from China to enter the U.S. duty-free under Section 321—has been scrapped under Trump’s latest tariffs

• 10% additional tariff on all Chinese imports - everything.

• 25% tariffs on Canada and Mexico are on hold (for now).

• China hits back with 15% tariffs on selected U.S. imports, restrictions on rare earth exports, and antitrust investigations into Google and other “unreliable entities.”

What This Means for Sellers

✅ WIN for US-based Ecom sellers as Temu & Shein’s model is at risk – This could reduce competition from ultra-low-cost Chinese sellers. A win for U.S.-based e-commerce brands.

✅ Higher costs on all Chinese imports – If you’re sourcing from China, expect immediate increases in your landed costs.

✅ More changes ahead – Chinese and U.S. leaders are expected to meet soon. This trade war isn’t over yet.

How to Respond

1️⃣ Negotiate with suppliers – See if they can absorb some of the tariff costs or lower your COGS.

2️⃣ Cut costs strategically – Optimize packaging, streamline fulfillment, and improve logistics efficiency.  This is what large brands like Starbucks are doing rather than passing all the costs on to consumers.

3️⃣ Adjust pricing if needed – Passing some of the costs to customers can help maintain margins.

4️⃣ Explore alternative sourcing – Diversifying away from China (e.g., Vietnam, India, Mexico) could reduce future risks.

Stay tuned. We’ll track the impact of these tariffs and provide updates as the situation unfolds.

Next I’d like to thank AMZ One Step for sponsoring this week’s edition of the 80/20 of Ecommerce newsletter.  

It’s sponsors like this that keep this newsletter for free and if you are looking to increase your conversion rates, I highly recommend AMZ One Step founded by Kamal Singh who’s an alumni speaker of the 7 Figure Seller Summit and one of the most knowledgeable people I know about creating Amazon images that convert.  

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Breaking news - Amazon Japan 🇯🇵 is now the #2 biggest Amazon marketplace in the world

Having overtaken Germany and the UK, Japan is only behind the US in terms of Amazon marketplace annual revenue according to a study by SmartScout 

Smartscout looked at the revenue at the ASIN level of products sold in each marketplace and found that Amazon Japan’s annual revenue was $55 billion behind only the US at $433 billion. 

This means that Japan is arguably the best opportunity for brands looking to expand overseas because
1) Market Size

2) Lower competition - the number of sellers in Japan is a lot smaller than in the UK, Germany, Canada, and Mexico. 

3) Barrier to entry - sure there are language and cultural challenges, but once you solve them, they become a moat to keep out the competitors. 

Thanks for the share Scott Needham.

Curious about how to start selling on Amazon Japan?  Checkout this training to learn how (even if you don’t speak Japanese) 

🚀 Tokyo E-Commerce Seller Meetup – Feb 12! 🛒

At the same time as the Tokyo Gift Fair, we’ll be hosting our next Tokyo Amazon Seller & E-Commerce Meetup on Wednesday, February 12th, from 7:00 – 9:00 PM in Otemachi.

If you’re selling on Amazon Japan, Rakuten, or other platforms, or looking to expand your e-commerce network, this is the place to be! Come connect, talk shop, and exchange ideas with fellow sellers, Amazon & Rakuten experts, and service providers.

📅 Date: Wednesday, February 12, 2025

🕒 Time: 7:00 PM – 9:00 PM

📍 Location: SPACES Otemachi (Otemachi Station, Exit C7)

🎟️ Admission: ¥2,000 (includes snacks & drinks)

👉 RSVP Now: https://meetu.ps/e/NRjc3/BhW4w/i

In case you missed it 

• DeepSeek R1 now available for Free in Perplexity

• Seller Tactic: How to do Amazon Japan Keyword Research if you don’t speak Japanese (Using Helium 10) 

Want to be featured here in the 80/20 of eCommerce 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 to launch your profitable products, cut product costs sourcing, or Japan entry strategy

• Partnerships: Let’s collaborate on webinars, content, or events.

Contact: gary [at] 8020sourcing.com

Have a great weekend,

Gary

PS: If you’ve already SEO optimized your Amazon listings, your images could be the thing holding you back against beating your competition. I highly recommend you checkout Amz One Step to see how they can improve your images to raise your conversion rates - Schedule a free strategy call now.