New U.S. Tariffs and Their Impact on Amazon FBA & FBM Sellers

E-commerce sellers have long relied on Amazon FBA (Fulfilled by Amazon) and FBM (Fulfilled by Merchant) to reach customers in the United States. Smooth logistics and predictable shipping costs have made it easier for sellers worldwide to do business.

But starting September 2025, the U.S. government imposed new tariffs on imports, directly impacting sellers who source products internationally. These changes have increased costs, caused confusion among buyers, and disrupted the flow of cross-border e-commerce.

Here, we’ll break down what’s happening, share a real case study from Pakistan, and guide you on how to prepare:

What Are the Newly Imposed U.S. Tariffs?

Tariffs are essentially import taxes levied by the U.S. government on goods shipped from specific countries. While tariffs have existed for years, the recent changes are broader, and they affect both FBA and FBM shipments.

Shipments that moved without issue before September 10th, 2025, are now facing additional charges at customs. Even courier partners like UPS and FedEx have started collecting these fees from U.S. customers before delivery.

• Reliable Source: U.S. Customs and Border Protection explains tariff regulations in detail.

Why Sellers Must Pay Attention Now

These tariffs are not optional, they are applied at customs, and shipments will not be released without payment.

For Amazon sellers, this means:

• Increased landed cost (cost of goods + freight + tariff).
• Lower competitiveness if prices are not adjusted.
• Customer dissatisfaction occurs when unexpected fees are charged at delivery.

This is already forcing many sellers to rethink pricing strategies.

Country-Wise Tariff Rates (Updated)

Here’s a quick snapshot of current tariff rates applied to products shipped into the USA:

Country Average Tariff Rate Source

Country	Tariff Percentage	Source
China	30%	Avalara
India	50%	Avalara
Vietnam	20%	Avalara
Pakistan	19%	Arab News
UAE	10%	Gulf Business

Depending on your source country, your shipping costs may rise dramatically.

Case Study: Apparel Shipments from Pakistan to the U.S.

AMZ Seller Hub recently managed FBM shipments of apparel products from Pakistan to the U.S.

• Before Sept 10, 2025: Customers paid $82 for the product (inclusive of shipping).
• After Sept 10, 2025: Delivery partners like UPS began asking $24–$25 extra tariff charges from U.S. customers upon delivery.

Customer Reaction

• Around 90% of customers refused to pay the unexpected fee and canceled their orders.
• Only 10% accepted and paid the extra amount.

To reduce cancellations, sellers had to refund customers for the additional fee just so deliveries could be completed.

Key Insight

Ultimately, sellers realized they would need to absorb tariffs into their product cost and increase selling prices to avoid surprising customers at checkout.

But at the end of the day, it’s the customer who pays, either directly (at delivery) or indirectly (through higher retail prices). This is why the current situation is extremely disruptive and confusing for both sellers and buyers.

How Tariffs Affect FBA and FBM Sellers Differently

When you’re selling internationally on Amazon, tariffs are one of those unavoidable costs that can cut into margins. But the way these fees show up depends heavily on whether you use Fulfillment by Amazon (FBA) or Fulfillment by Merchant (FBM).

FBA Sellers:

For FBA, tariffs come into play the moment your inventory arrives at Amazon’s U.S. fulfillment centers. Import duties, customs fees, and tariffs must be paid upfront before the goods are cleared.

That means FBA sellers carry the financial burden right away, which can tie up cash flow. The upside is customers get a smoother buying experience because they don’t see surprise costs at checkout or delivery—everything is already handled on the backend.

• Impact on cash flow: Larger upfront payments reduce liquidity.
• Pricing pressure: Sellers may need to increase product prices to offset tariffs.
• Predictability: Once tariffs are cleared, there are no extra surprises for buyers.

FBM Sellers:

For FBM, things work differently. Couriers like UPS, FedEx, or USPS often collect tariffs, duties, and customs fees directly from the customer when the package arrives.

This shifts some of the financial responsibility away from the seller but can negatively affect customer experience. Buyers might be frustrated if they weren’t expecting extra charges, which could lead to lower satisfaction or higher return rates.

• Customer perception: Unexpected delivery fees can cause disputes.
• Reduced seller risk: Sellers don’t tie up as much capital upfront.
• Operational challenge: Explaining tariffs and shipping costs clearly becomes essential.

Big Picture:

Both FBA and FBM sellers are affected by tariffs, but in different ways. FBA sellers shoulder upfront costs and enjoy smoother customer relations, while FBM sellers risk customer dissatisfaction but have more flexibility with cash flow. The best model depends on your margins, volume, and how transparent you can be with customers about potential costs.

Short-Term Challenges for Sellers

Here are some of the Short-Term Challenges for Amazon Sellers:

• Uncertainty: Even government authorities are still clarifying procedures.
• Cash Flow Stress: Sellers must suddenly absorb higher costs.
• Customer Distrust: Unexpected fees cause cancellations and negative reviews.
• Refund Pressure: To save orders, many sellers are refunding tariff charges.

Long-Term Implications for Pricing and Customers

In the long run:

• Sellers will increase their product prices to cover tariff costs.
• Customers will ultimately bear the burden through higher prices.
• Some sellers may exit certain product categories if margins collapse.

This could reduce competition in some niches, while strengthening sellers who adapt quickly.

What Sellers Should Do Right Now

• Check Tariff Rates: Know the tariff percentage for your source country.
• Recalculate Landed Costs: Factor tariffs into your product pricing.
• Communicate Clearly: Inform customers if any temporary fee may apply.
• Stay Updated: Follow reliable sources like CBP and Avalara.
• Work with Experienced Partners: Platforms like AMZ Seller Hub help you stay on top of changes.

The Role of AMZ Seller Hub in Keeping You Updated

AMZ Seller Hub’s mission is clear and simple:

We keep Amazon sellers informed about every update that affects their business. From new tariffs to FBA policies and logistics updates, we provide clarity in a fast-changing environment so you can make the right decisions at the right time.

The newly imposed U.S. tariffs have already disrupted sellers across the globe. For Amazon FBA and FBM sellers, it’s a wake-up call to recalculate costs, rethink pricing, and prepare customers for changes.

Our recent case study with apparel shipments from Pakistan shows how quickly the market can shift. While the future is uncertain, one thing is clear: sellers who adapt early will survive and thrive.

AMZ Seller Hub will continue to monitor updates and help you through this transition, because staying informed is the first step to staying profitable.