Particle.news

Download on the App Store

Amazon Sellers Raise Prices as Trump’s China Tariffs Drive Up Costs

Third-party merchants on Amazon are increasing prices, cutting costs, and diversifying supply chains in response to 145% tariffs on Chinese imports.

Image
Amazon sellers have started to raise prices in the wake of tariffs.
Image

Overview

  • Amazon third-party sellers have raised prices on a wide range of goods, with SmartScout tracking an average price increase of 29% across 930 listings since April 9.
  • Approximately 25% of observed price hikes were initiated by China-based sellers, who are particularly impacted by the steep import duties.
  • Merchants are exploring alternative manufacturing locations in countries like India, Mexico, and Vietnam to reduce reliance on Chinese supply chains, though transitions may take months or years.
  • Amazon CEO Andy Jassy acknowledged that some sellers must pass tariff costs onto consumers but emphasized the company's commitment to keeping prices low where possible.
  • Amazon disputes the scale of price increases reported, stating that fewer than 1% of items have been affected and that price fluctuations remain within typical ranges.