42.5% — the total effective tariff rate on consumer electronics sourced from China in 2026, before a single Amazon fee. If you've been calculating margins based on the FOB price from your supplier, you've been working with the wrong number.
Tariffs hit your margin: before you sell a single unit. When your supplier ships goods to the US, you — as the importer of record — pay duties before those products ever reach an Amazon fulfillment center. This increases your Cost of Goods Sold (COGS), shrinks your margin, and can turn a profitable product into a money loser overnight.
The most common mistake FBA sellers make is calculating margins based on the FOB (Free on Board) price from their supplier without accounting for tariffs. A product with a 50% margin based on FOB price might only have a 15% margin after duties and fees.
| Product Category | MFN Rate | From China (Total) | From Other Countries |
|---|---|---|---|
| Electronics & Gadgets | 0–5% | 27.5–42.5% | 15–20% |
| Clothing & Apparel | 10–32% | 35–57% | 25–47% |
| Kitchen & Home | 0–8% | 25–43% | 15–23% |
| Toys & Games | 0–6% | 25–31% | 15–21% |
| Beauty & Personal Care | 0–6% | 25–31% | 15–21% |
| Sports & Outdoors | 0–10% | 25–35% | 15–25% |
| Pet Supplies | 0–8% | 25–33% | 15–23% |
Rates include MFN base duty + Section 301 (China only) + Section 122 (10% global surcharge). Section 232 products (steel, aluminum) face separate higher rates.
⚠️ Critical Change
The $800 de minimis exemption for Chinese goods has been eliminated. If you dropship from China or use low-value shipments, every single package now faces duties or flat fees. This is a massive change that caught many sellers off guard.
The de minimis threshold — which previously allowed packages valued under $800 to enter the US duty-free — no longer applies to goods from China. This affects FBA sellers who split shipments into small parcels, as well as anyone using Chinese dropshipping.
Use our tariff calculator to get the tariff portion instantly, or use Easyship to calculate shipping + duties together. Then add your Amazon fees to see your true margin.
Vietnam, India, Thailand, and Indonesia don't face Section 301 tariffs. While they have the 10% Section 122 surcharge, total rates are 10-25% lower than Chinese goods. Consider the "China plus one" strategy — develop at least one alternative supplier.
Similar products can have dramatically different duty rates depending on their HTS code. A product classified as a "plastic household article" might pay 3.4% MFN, while the same product classified as a "plastic container" might pay 0%. Work with a customs broker to review your classifications.
If you can source from Mexico or Canada, USMCA-qualifying goods are exempt from the 10% Section 122 surcharge. This can save thousands on large shipments.
Before launching a new product, calculate the full landed cost including tariffs. A product with thin margins that requires Chinese sourcing may not be viable. Tools like Jungle Scout and Helium 10 help with product research, but you need to layer tariff costs on top of their estimates.
Your competitors face the same tariffs. If an entire product category is hit with 40% duties, market prices will adjust upward. Don't be afraid to raise prices — but do it in line with the market using competitive analysis tools.
Calculate Your FBA Product's Tariff Cost
See exactly how much duty you'll pay before committing to a supplier.
Use Free Calculator →The importer of record pays the tariff — that's you, the seller, not Amazon and not your supplier. Tariffs are paid when goods enter the US, before they reach the Amazon warehouse.
For Chinese goods, no. The exemption has been eliminated. For goods from other countries, the $800 de minimis exemption is still technically in effect, but most commercial FBA shipments exceed this threshold.
Yes. Tariffs are assessed at the US border regardless of the final destination. Whether goods go to your home, a 3PL, or an Amazon FBA warehouse, duties are owed.
Use the USITC's HTS search tool at hts.usitc.gov. For complex products, hire a customs broker — misclassification can result in penalties up to 4x the unpaid duties.
| Cost | Typical Range | Notes |
|---|---|---|
| Product Cost (FOB) | 15-40% of sell price | Varies by product |
| Shipping to US | 3-8% of sell price | Sea freight vs. air |
| Import Tariffs | 25-57% of customs value | Biggest variable in 2026 |
| Amazon Referral Fee | 8-15% of sell price | Category dependent |
| FBA Fulfillment Fee | $3-8 per unit | Size/weight based |
| Storage Fees | $0.56-2.40/cu ft/mo | Higher Oct-Dec |
| PPC Advertising | 10-25% of revenue | Category dependent |
| Returns/Refunds | 2-5% of revenue | Category dependent |
Tariffs are assessed on the customs value (product cost + shipping + insurance), not on the Amazon selling price. Multiple layers stack:
📊 Full Cost Breakdown — $24.99 Selling Price
Product Cost (FOB): $4.00 | Shipping: $1.00 | Customs Value: $5.00
Tariff (39% = 4% MFN + 25% S301 + 10% S122): $1.95
Amazon Referral (15%): $3.75 | FBA Fee: $3.50 | PPC (~15%): $3.75
Total Costs: $18.20 | Net Profit: $6.79 | Margin: 27.2%
Without tariffs, the margin would be 36%. The tariff cost reduces margin by ~9 points. At 500 units/month, that's ~$975/month in duty costs alone.
Tariffs: Source from non-China countries. Use our comparison calculator to see the difference. Vietnam saves 25-30% on most categories. Optimize your HTS classification.
Amazon Fees: Reduce product dimensions and weight to lower FBA fees. Bundles can improve referral fee ratios.
PPC: Target ACoS under 25%. Use exact match for proven keywords. Tools like Helium 10 help identify high-converting, lower-competition keywords.
Product Cost: Negotiate with suppliers once you have volume. Consider consolidating SKUs to improve leverage.
Last updated June 2026