Effective supply chain management is the backbone of a smooth selling experience for Amazon sellers. As we approach the Chinese New Year and brace for political changes impacting trade, a proactive approach to inventory and logistics is essential. Here’s how these factors intersect and what actions can help you minimize disruptions.

1. Understanding the Impact of the 2024 Trump Election on Supply Chain

With Donald Trump’s recent election victory, shifts in U.S.-China trade relations bring new pressures. Trump has proposed a 10% tariff on all imported goods and a more substantial 60% tariff specifically on Chinese imports. For Amazon sellers who source from Chinese suppliers, this means an inevitable rise in costs, affecting everything from logistics fees to customs duties. Staying informed about upcoming trade changes and being prepared to adapt can help offset some of these cost increases.

2. Freight Rate Spikes and Supplier Holidays

The Chinese New Year in mid-January marks an annual slowdown in manufacturing, with Chinese factories closing for weeks. Freight rates traditionally soar during this period as suppliers rush to complete orders, and shipments surge before the holiday shutdown. This year, with the anticipation of higher tariffs, preemptive stockpiling is intensifying demand for shipping services, leading to container shortages, heightened freight costs, and potential port congestion in the U.S.. Without timely planning, sellers risk facing unexpected expenses and delays that could significantly impact sales plans.

3. Pre-Planning for Smooth Inventory Flow

To maintain inventory levels and avoid steep price increases, it’s crucial to coordinate closely with suppliers on cutoff dates for orders and lead times. Here are some practical steps:

• Place Early Reorders: Beat the holiday rush by placing orders well in advance. This can help you avoid elevated freight costs and ensure goods arrive before the New Year’s closures.

• Secure Advance Shipping Plans: Collaborate with logistics providers to reserve container space early. This is especially important for items that need to reach Amazon FBA warehouses ahead of the Chinese New Year holiday. Securing these plans in advance reduces the risk of shortages and ensures smoother fulfillment.

4. Avoiding Stockouts and Minimizing Costs

Proper forecasting is essential to avoid stockouts and unexpected penalties. Here are a few tips for optimizing inventory:

Monitor Sales Trends: Use historical sales data to accurately project demand and stock levels. Overstocking might seem like a safe choice, but without a calculated approach, it can increase costs due to higher Amazon storage fees.
Optimize Communication with Suppliers: Keep communication channels open and proactive with suppliers and logistics partners. Regular updates on order status and shipping schedules can help prevent delays and unexpected issues.
Plan for Flexible Warehousing Options: If delays seem likely, consider flexible storage options or 3PL providers to temporarily hold stock until it can be smoothly transitioned to Amazon fulfillment centers.

Final Thoughts

The upcoming Chinese New Year, paired with shifting trade policies, requires a well-thought-out plan to mitigate risks. By preparing inventory, ordering ahead, and keeping a pulse on logistics trends, Amazon sellers can better position themselves to avoid disruptions. With strategic planning and adaptability, sellers can protect profitability and ensure a steady sales flow through the Chinese New Year and beyond.

Feel free to reach out if you need assistance managing your Amazon FBA supply chain operations. We are here to help ensure a smooth, cost-effective process from supplier coordination to timely inventory management, allowing you to focus on growing your business.

US Tariffs on China – Key Updates & What Amazon Sellers Should Do

U.S. Tariff Escalation on Chinese Imports (Feb–Apr 2025)

• February 1: The U.S. imposed a 10% tariff on all Chinese imports, citing trade imbalances and intellectual property concerns.
• March 4: An additional 10% tariff was applied, bringing the total to 20%.
• April 2: A reciprocal 34% tariff was introduced, raising the cumulative rate to 54%.
• April 9: A further 50% tariff was added, resulting in a total tariff of 104% on Chinese goods — and later increased to 125% the same day.

---

China’s Tariff Response on U.S. Goods (Feb–Apr 2025)

• February 10: Imposed a 15% tariff on U.S. coal and LNG, and 10% on crude oil, autos, and machinery.
• March 10: Added 15% tariffs on U.S. chicken, wheat, corn, and cotton, and 10% on soybeans, pork, beef, dairy, and fresh produce.
• April 8: Raised total tariffs to 84% on a broad range of U.S. goods and introduced restrictions on multiple American firms.

The escalating trade war has triggered significant disruptions in the global supply chain, prompting widespread concern among Amazon sellers.
But rather than reacting with panic, this is a time to assess calmly, adapt strategically, and make data-driven decisions to maintain profitability.

---

What Amazon Sellers Need to Do

In the face of rising tariffs and growing uncertainty, here are five critical steps Amazon sellers should take:

1. Avoid Sudden Price Increases on Amazon

The inventory currently stored at Amazon was most likely imported before the recent tariff hikes. Increasing prices too quickly can negatively impact your Best Seller Rank (BSR) and sales momentum. Be strategic — monitor the market before making any pricing adjustments.

2. Lower Your Cost of Goods Sold (COGS)

Negotiate better product pricing for upcoming purchase orders. Explore various shipping options to secure the lowest possible freight costs. Reducing COGS is the most effective way to absorb the added tariff burden while keeping your listings competitive.

3. Review Duty Rates & HS Codes

Work with your customs broker or freight forwarder to ensure your products are classified under the most favorable HS codes. A small change in classification can significantly reduce import duties.

4. Ship to West Coast FCs or AWD Warehouses

Targeting Amazon Fulfillment Centers (FCs) or Amazon Warehousing & Distribution (AWD) facilities on the West Coast can lower inland freight charges for goods arriving from Asia, helping reduce your overall landed cost.

5. Recalculate Profitability with Updated COGS

Compare your revised landed cost (post-tariffs) with your previous COGS. In many cases, smart supplier negotiations and optimized shipping can keep margins healthy or at least offset a portion of the additional costs.

---

Need Help Navigating the Tariff Impact?

If you're feeling the pressure from rising tariffs, A2Z Supply Chain is here to help.

Whether it's reducing freight costs, negotiating supplier pricing, optimizing HS code classifications, or running the numbers on your updated COGS — we’re ready to support Amazon sellers through these challenging times.

📞 Book a call with us today, and let’s build a plan to protect your profitability and keep your operations running smoothly.

---

🔔 Stay Informed

The trade war landscape is shifting rapidly. Staying updated is essential to making smart, timely business decisions.

📲 Follow the A2Z Supply Chain WhatsApp Channel for real-time insights:
https://whatsapp.com/channel/0029Vb5fz7FDTkK25T8Cns1r