Tariffs and trade shift: A 2025 checkpoint for marketplace sellers

Temporary U.S.-China tariff rollback now in effect

• U.S. tariffs on Chinese goods drop from 145% to 30%.
• China’s tariffs on U.S. goods fall from 125% to 10%.

This surprise agreement offers immediate relief for marketplace sellers, especially in key categories like electronics, textiles, steel, and beverages. However, this is a temporary window—uncertainty remains beyond the 90 days as both sides continue negotiations.

Marketplace impacts are emerging

1. Customs scrutiny and De Minimis reform are still in play.

Customs authorities continue a heightened focus on country-of-origin declarations and HS code accuracy, particularly for sellers using high-volume aggregators like Temu or Shein.

Scrutiny is mounting around product classification and potential mislabeling practices, with customs delays, fines, and retroactive duties a growing risk.

At the same time, De Minimis reform is advancing as planned. Until now, shipments under $800 into the U.S. have often skipped import duties. That’s changing in 2025. U.S. lawmakers are tightening the De Minimis rule, especially for repeat shipments and certain product categories.

• For sellers, this means small, cross-border orders may now face duties. If you're using DDP or shipping low-cost items directly from overseas, it’s time to revisit your landed cost assumptions to avoid margin surprises.
• And the impact isn’t just theoretical. Maersk CEO, Vincent Clerc, recently noted, "We saw a 30% to 40% drop in container volumes between the U.S. and China in April as customers reacted very fast to the tariffs". Supply chain disruptions are already driving up costs and reducing product availability.
  
  

While the May 12 agreement may reverse some of this decline temporarily, supply chain disruptions and cost fluctuations remain a reality for sellers.

2. Landed cost tracking is now essential.

With more variables affecting total cost—tariffs, freight, customs, and currency shifts—relying on rough estimates isn’t enough. Sellers are investing in real-time landed cost tools and marketplace integration platforms like ChannelEngine to stay price competitive and protect margins, especially when selling across multiple markets.

3. Fulfilment strategies are being diversified.

To avoid last-minute duties or delays, some sellers are placing inventory closer to their customers. For some, that means warehousing in the U.S. or the EU. Others are blending just-in-time shipping with regional stock to hedge against disruptions. This remains a critical focus even with the tariff rollback, given the temporary nature of the relief.

4. Ad budgets are shifting under cost pressure.

Some marketing teams are adjusting their budgets as tariffs raise the base cost of goods. Some ecommerce brands are reducing paid media budgets and shifting to more targeted or organic growth strategies. According to Chew On This, up to $10B in ecommerce ad spend could be pulled back this year.

5. U.S. ports could tighten up.

Importers held off on shipments earlier this year due to tariff uncertainty. Now that ordering is picking back up, experts are warning of potential port congestion, especially ahead of Q3 and Q4 sales cycles.

Brands should build in more lead time, coordinate closely with their freight and logistics partners, and factor potential delays into their seasonal and promotional planning. 

Ecommerce brands are recalibrating their marketplace strategies

1. Prime Day participation to be reconsidered amid tariff relief.

Before this announcement, some Amazon sellers had reportedly stepped back from Prime Day 2025. As Reuters reports, the uncertainty around tariffs had made participation less viable for certain categories, especially for sellers with narrow margins or less visibility into final costs.

However, with the May 12 U.S.-China agreement temporarily rolling back tariffs for 90 days, some sellers may need to revisit that decision. The window of reduced costs presents an unexpected opportunity to re-enter major sales events like Prime Day and Back-to-School with stronger margins, at least through mid-August.

2. Transparency at checkout is becoming a conversation.

The debate around tariff transparency at checkout: whether buyers should see a clear breakdown of costs, including duties and fees, has been growing throughout 2025. The tariff rollback may momentarily ease the urgency of this conversation for U.S.-China routes, but for sellers operating globally or shipping from other regions, the pressure remains unchanged.

Moreover, the rollback’s temporary nature adds complexity. As a brand, you need to decide:

• Should you maintain transparent tariff disclosures now?
• Or adjust messaging to reflect current lower costs, while preparing to pivot back if tariffs rise again?
  
  

3. UK businesses could be leaning towards local sourcing.

Understanding Amazon for First-Party vs. Third-Party Sellers

If you’re selling on Amazon - and most brands are - now’s a good time to take a closer look at your business model. First-party (1P) and third-party (3P) setups come with very different levels of control, risk, and tariff exposure, especially in today’s trade environment.

If you're a 1P seller, expect tighter margins, and plan for more ownership

Amazon controls your pricing and the import process. When tariffs rise, that can mean fewer POs, renegotiated terms, or shifting cost burdens. It’s efficient but limits your ability to pivot. Now’s the time to invest in a recovery management strategy: think margin analysis tools, forecasting software, or even a dedicated 1P cost-recovery solution to help flag underperforming SKUs and respond faster to price pressure.

If you're a 3P seller, use your flexibility, but manage your exposure

You have control over imports and pricing, which means faster reaction time. But you also carry the risk—tariffs, HS code errors, and customs delays all fall on your team. This is where an ecommerce integration software can support you: syncing pricing with real-time costs, flagging compliance risks, and automating tax logic across regions. It may also be time to audit your customs processes and strengthen internal controls on landed cost modeling.

Your fulfilment model matters too, especially when things shift fast

With FBA, you're locked into Amazon’s cross-border pipeline. That’s great for reach, but hard to adjust mid-season if tariff costs spike. FBM offers more flexibility—but demands more operational coordination. If you’re not already using a hybrid fulfilment setup, this may be the year to start. A marketplace integration platform could be a great investment, as it lets you split stock, reroute on short notice, and adjust fulfilment rules based on tariff zones and sales velocity.

Don’t keep all your inventory and all your leverage in one setup

Whether you're 1P, 3P, or both, the real question is: how diversified is your setup? A hybrid selling model gives you more options. You don’t have to switch entirely, but spreading risk across models, warehouses, and channels can help protect margin and avoid surprises when policies shift.

Short-term action steps: Planning for agility 

With major 2025 sales events approaching—Prime Day, Back-to-School, and Q4 peaks—small operational moves now can make a big impact later. These aren't massive overhauls; they’re smart, high-leverage checks to help you stay competitive and in control.

1. Validate your product classifications

Product classification errors are one of the fastest ways to trigger customs delays, unexpected duties, or even shipment holds. Review your top-selling SKUs and validate codes across key markets. If you sell across multiple categories or regions, consider using a classification audit tool or partnering with compliance experts to reduce the risk of retroactive charges.

2. Reassess your De Minimis exposure

The U.S. is tightening duty-free exemptions for shipments under $800. If your fulfillment model relies on frequent, low-value DDP shipments, you may be more exposed than expected. This is a good time to model scenarios using updated landed cost data and consider whether routing or packaging changes can minimize duty triggers.

3. Get intentional about Prime Day

Participation doesn’t have to be all-in or all-out. Review your margin structure by product and region. With the May 12 tariff rollback now in effect, participation strategies may require a fresh look.

• For products directly benefiting from lower tariffs, now is an opportunity to re-enter the event more competitively.
• For others, local fulfilment or selective participation may still make more sense.
• Running limited-time deals in tariff-advantaged regions can help sellers stay aggressive without overcommitting.

4. Build in pricing agility

Dynamic pricing rules aren’t just about demand—they’re essential for managing cost variability across regions. Now’s the time to audit your pricing setup: Can it respond to tariffs, currency fluctuations, or cross-border fees? Have you considered working with a marketplace integration platform or a similar solution to help automate these processes at scale?

5. Pressure-test your fulfilment plan

Port congestion, customs delays, and cost spikes can catch even experienced sellers off guard. Work with logistics partners to simulate a few “what-if” scenarios, like a shipment hold in LA or duty increases on key SKUs. Even small adjustments to inventory placement or lead times can pay off big during peak.

These steps aren’t complex, but they’re the difference between reactive firefighting and confident execution. Sellers who act now will enter Q3 and Q4 with more pricing power, faster response time, and fewer surprises.

6. Ask the right questions now

• Are our product classifications current and correct?
• Can our pricing flex by region, currency, or duty level?
• Is our inventory positioned to handle disruptions or spikes in cost?
  
  

The ecommerce brands who are asking these questions now—before deadlines hit—will have more room to maneuver, better margins to protect, and fewer trade-offs to make when peak season arrives.

ICYMI: We’ve covered this shift before.

👉 Tariffs on the horizon in 2025? How marketplace sellers can prepare

Sell smarter with the right tools and support

At ChannelEngine, we’re not here to prescribe one-size-fits-all strategies. We’re here to equip you with the tools and data you need to make smart, timely decisions.

Our platform supports:

• Rule-based dynamic pricing that lets you set strategies by channel, region, or cost conditions
• Localized tax and duty handling to stay compliant across borders
• Real-time inventory modeling to support flexible fulfilment and smarter stock placement
• Marketplace-specific compliance features to help meet regulatory and listing requirements

We give you the infrastructure to stay in control, even as tariffs, fulfilment costs, and customs requirements shift. You define the pricing logic; ChannelEngine helps you scale it efficiently across marketplaces.

And when you need help putting that strategy into motion? Our Partner Managed Services program connects you with trusted experts in logistics, operations, tax, and more, right within the ChannelEngine ecosystem.

Whether you're preparing for Q4, exploring regional fulfilment, or scaling globally, we help you move faster, with fewer surprises.