China has been the default sourcing country for Amazon FBA sellers for over a decade. But with tariff rates on Chinese goods now exceeding 40-60%, the math has changed. Here's how every major sourcing country compares in 2026.
| Country | Section 301 | Section 122 | Typical Total Rate |
|---|---|---|---|
| 🇨🇳 China | 7.5-100% | 15% | 27-72%+ |
| 🇻🇳 Vietnam | 0% | 15% | 15-33% |
| 🇮🇳 India | 0% | 15% | 15-33% |
| 🇹🇭 Thailand | 0% | 15% | 15-33% |
| 🇮🇩 Indonesia | 0% | 15% | 15-33% |
| 🇧🇩 Bangladesh | 0% | 15% | 15-47% |
| 🇲🇽 Mexico (USMCA) | 0% | 0% | 0-18% |
| 🇨🇦 Canada (USMCA) | 0% | 0% | 0-18% |
USMCA-qualifying goods from Mexico face zero Section 301 and zero Section 122 tariffs. You only pay the MFN base duty, which ranges from 0-18% depending on the product. For electronics, that's 2.5%. For many consumer goods, it's under 5%. Plus, shipping times are 2-5 days instead of 30-45 from Asia.
The downside: Mexican manufacturing costs are generally higher than Asian alternatives, and the manufacturing ecosystem for certain product categories isn't as developed.
Vietnam has emerged as the top China alternative in Asia. No Section 301 tariffs, strong manufacturing capabilities for electronics, furniture, textiles, and footwear. The 15% Section 122 surcharge still applies, but total rates are typically 15-25% lower than China.
Many Chinese manufacturers have opened Vietnam facilities specifically to help buyers avoid Section 301 tariffs. Be careful though — if the product is substantially Chinese in origin, CBP may still apply Chinese tariff rates under transshipment rules.
India excels in specific categories: textiles, jewelry, leather goods, and pharmaceuticals. No Section 301 tariffs, though the 15% Section 122 surcharge applies. Manufacturing quality has improved significantly, but lead times and communication can be challenging compared to Chinese suppliers.
Despite the tariffs, China remains the world's largest manufacturing economy. For complex products, high-tech goods, or products requiring sophisticated supply chains, China may still be the only viable option. The question isn't "should I leave China?" but rather "for which products does the tariff math still work?"
💡 Pro Tip: China Plus One Strategy
Don't put all your sourcing in one country. Develop a primary supplier in China and a secondary supplier in Vietnam or India. This gives you flexibility to shift production based on tariff changes and protects against supply chain disruptions.
Don't just look at tariff rates — the product cost, shipping cost, and quality all matter. A product that costs $3 from China with 45% tariffs ($4.35 landed) might cost $4 from Vietnam with 20% tariffs ($4.80 landed). In that case, China is still cheaper despite higher tariffs.
Use our Tariff Comparison Calculator to compare two countries side by side, or the Landed Cost Calculator for a complete cost breakdown. For product research, Helium 10 can help you identify which products have the demand to justify the sourcing effort.
Compare Sourcing Countries Side by Side
Tariff Comparison Calculator →Mexico under USMCA has the lowest tariff rates (0-5% for most products). But product costs may be higher than Asia. Vietnam offers the best balance of low tariffs and low manufacturing costs.
For some products yes, especially complex or high-tech goods where China has no competition. But for commodity products, Vietnam and India often provide better landed costs after tariffs.
No. Tariffs are based on country of origin (where the product was manufactured), not where it ships from. Transshipment to avoid tariffs is illegal and CBP actively investigates it.