The Agreement
In May 2025, the US and China agreed to reduce and/or freeze their reciprocal tariffs for 90 days—bringing US tariffs on Chinese imports down to approx 30% and China’s tariffs on US goods down to around 10% during the period. The Economic Times+1
The aim: de-escalate the trade war and buy time for deeper negotiations. Reuters+1
Why It Matters for Amazon Sellers
- Landed Cost Relief: Lower import duties = lower cost basis for SKUs sourced from China.
- Pricing Flexibility & Margin Protection: Brands may now reconsider previous cost-built-in pricing or discounting.
- Supply Chain Stability: Reduced tariff risk for shipping windows over the next quarter.
- Competitive Advantage: Sellers still operating with high-tariff assumptions can move faster.
What to Do During the 90-Day Window
- Audit Your Cost Model: Recalculate landed cost for Chinese-sourced SKUs, update margin & ACOS targets.
- Negotiate with Suppliers: Lock in favourable pricing terms now while the tariff truce holds.
- Update Pricing Strategy: Consider whether you can improve AOV, add features or maintain margin rather than cut price.
- Stock Planning: Push inventory flows to take advantage of the cost window, but avoid over-ordering given the end-of-term uncertainty.
- Prepare for Renewal Risk: Build a scenario for the end of the 90 days—what happens if tariffs go back up, or new trade barriers emerge.
30/60-90-Day Action Plan
Days 1–30:
- Re-run landed cost models for top Chinese-sourced SKUs.
- Adjust pricing or bundling strategy accordingly.
- Negotiate supplier terms and shipping schedules.
Days 31–60:
- Monitor if the tariff window is holding; observe any changes in supply lead times or sourcing shifts.
- Enact contingency for switching some SKUs to non-China sources or alternate suppliers.
Days 61–90:
- Finalize scenario planning for post-truce environment.
- Re-forecast based on worst-case tariff escalation or worst-case supply disruption.
- Communicate changes to ads, pricing, launch strategy, and AOV targets.
Risks to Watch
- The 90-day truce does not guarantee tariffs won’t rise again—only that the escalation is paused.
- Some Chinese importers may front-load shipments, causing skew in supply/inventory risk. The Guardian
- Non-tariff barriers (export controls, rare earths, trade compliance) may still impact cost even if tariffs pause.
Final Word
The 90-day tariff truce gives Amazon sellers a window of opportunity—but only if you act. Re-optimize costs, needle your pricing strategy, and plan for the end of the window as diligently as for the start. Delay, and you risk slipping margin or getting caught flat-footed when tariffs move again.
