Trump’s Tariffs for Amazon Sellers
Key Discussion Points
Impact of Trump’s Proposed Tariffs
- Fentanyl Crisis Connection: President Trump’s proposed 10% tariff on Chinese goods is a response to the U.S. fentanyl crisis, allegedly linked to China. This could have significant implications for sellers importing from China.
- Immediate Actions for Sellers:
- Use a cost calculator to evaluate the impact of a 10% increase on your landed cost.
- Negotiate reduced supplier costs if your margins are slim.
- Implement a China Plus One Strategy to diversify your supply chain, sourcing from countries like India, Vietnam, or El Salvador.
Sourcing Diversification Tools
- Alibaba’s Country Filter: Quickly identify suppliers from alternative countries based on your product’s raw materials.
- Import Yeti: Research where top brands source their products and identify potential suppliers in non-China regions.
Challenges with Mexico as an Alternative
- Trump has also threatened a 25% tariff on Mexican goods, complicating plans for those sourcing from or considering Mexico as a secondary supplier.
Preparing for Chinese New Year
- Production Challenges:
- Workers may rush production before leaving, leading to potential quality issues.
- Not all workers return after the holiday, resulting in possible delays and retraining periods.
- Key Tips:
- Schedule pre-shipment inspections to ensure quality control.
- Communicate proactively with suppliers about timelines.
- Avoid placing critical orders immediately after the holiday to allow time for new workers to adjust.
Long-Term Strategies for 2024 and Beyond
Building Strong Supplier Relationships
- Visit your suppliers’ factories to foster better communication and gain insights into their processes.
- Negotiate better terms, such as reduced deposits or extended payment deadlines.
Leveraging Annual Forecasting
- Provide suppliers with a forecasted order plan for the year to:
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