LOGIC.co.id – The import tariff hike imposed by U.S. President Donald Trump on goods from China has significantly impacted the e-commerce landscape. Many sellers, particularly those relying on Chinese manufacturing, have decided to pull out of the 2025 Amazon Prime Day sales event.
Trump’s move to raise import tariffs on Chinese goods to as much as 145% starting April 9, 2025, has led to soaring production costs. As a result, many sellers—especially small and medium-sized businesses—are struggling to maintain profit margins and have been forced to opt out of large-scale discount programs.
Sellers Choose Survival Over Promotions
One affected seller is Steve Green, who sells bicycles and skateboards imported from China. For the first time since 2020, Steve has decided not to participate in Prime Day, saying he can no longer afford to offer discounts.
“I’d rather sell old stock at full price than take a loss because of the new tariffs,” he said.
Kim Vaccarella, CEO of Bogg Bag, is experiencing similar challenges. She has halted production in China and begun shifting manufacturing operations to alternative countries like Cambodia and Vietnam. At the same time, her company is focusing more on exploring retail partnerships with major U.S. stores.
Amazon Remains Optimistic, but Consultants Say Otherwise
While Amazon claims seller participation in Prime Day 2025 remains strong, several e-commerce consultants report otherwise. According to them, many clients have either withdrawn or significantly scaled back their promotional efforts.
Some strategies adopted by sellers include raising prices, cutting ad budgets, and importing goods in smaller quantities to reduce the risk of large losses.
With over 62% of products on Amazon supplied by third-party sellers, this decline in participation is expected to affect the number of deals, product variety, and even Amazon’s potential ad revenue.
“Amazon may remain steady,” said CFRA analyst Arun Sundaram, quoted by Reuters on Tuesday (April 29, 2025).
“But it’s the small sellers who are taking the hardest hit,” he added.