Lunch With Norm
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[LWN] 🚨 Lost In a Crowd of Thousands...

[LWN] 🚨 Lost In a Crowd of Thousands...

Lunch With Norm's Weekly Newsletter - Amazon News & Updates

April 07, 2025 • Estimated Read Time: 15 minutes

🚨 The Tariffs Are Here…

What you’ll find in this week’s newsletter:

🔥 Lost in a Crowd of Thousands… [True Story]
🚨 The Tariffs Are Here! [Deep Dive & Full Timeline]
🚀 The “$800 Loophole” Is Closing
✅ Make a Beauty Brand in 5 Minutes…
📈 Latest News on the TikTok Ban!

🚨 Don’t forget to get your FREE ChatGPT AI prompt book courtesy of Skill Leap Futurepedia when you refer one Beardo 👇

🔥 LOST IN A CROWD OF THOUSANDS… [TRUE STORY]

Back in the ’90s, I scored a couple VIP tickets to the Montreal Formula One Grand Prix.

My son was five, and we made the drive in from Toronto - just the two of us.

It was one of those father-son trips you always remember.

We got off the subway and walked into a massive crowd.

Thousands of people packed into the streets around the track.

The energy was electric.

And then, in the middle of it all, his hand slipped out of mine.

Just like that, he was gone.

I felt the panic rising - but I didn’t let it take over.

I stopped.

Took a breath.

And I scanned the area.

And there he was, standing by an ice cream stand like nothing had happened.

I’ve never been more relieved in my life.

That day ended up being unforgettable.

We saw Michael Schumacher up close, his hero, and Damon Hill, one of my favorites, who ended up winning the race.

But that moment in the crowd stuck with me.

Business lesson:

Things are going to catch you off guard, whether it’s in life or business.

The trick is not to panic.

Stay steady.

Trust yourself.

Nine times out of ten, the solution’s right there - you just need a clear head to see it.

Enjoy the rest of newsletter.

— Norm

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💰 TARIFFS, TRADE WARS, AND WHAT SELLERS NEED TO KNOW…

If you’ve been around long enough, you know this isn’t the first time U.S.–China trade tensions have flared up. But what we’re seeing right now? It’s a full-blown trade war with real consequences.

President Trump’s latest move? Sweeping 34% tariff on all Chinese imports (on top of previous tariffs), set to hit April 9. And China didn’t take it lightly—they’ve fired back with their own tariffs and a laundry list of counterattacks.

🚨The Trade War Timeline:

January 2020

The U.S. and China signed the Phase One trade deal. China was supposed to buy $200B of U.S. goods. It didn’t happen.

October 2022 – December 2024

Biden keeps most Trump-era tariffs in place and adds new restrictions on chips and semiconductors.

February 2024

On the campaign trail, Trump says if re-elected, he’ll impose 60% tariffs on all Chinese imports.

May 2024

Biden raises tariffs on Chinese EVs, solar panels, aluminum, and steel.

February 4, 2025

Trump slaps a new 10% tariff on all Chinese imports.
China fires back with duties on U.S. coal, LNG, and farm machinery.

March 4, 2025

Another 10% tariff goes into effect on Chinese goods.
China counters with up to 15% tariffs on U.S. pork, beef, soy, chicken, and tighter controls on U.S. companies.

April 3, 2025

Trump announces a 34% tariff on all Chinese imports, calling it Liberation Day.

April 4, 2025

China fires back with:

Export controls on rare earth minerals
A lawsuit at the WTO
Suspension of U.S. sorghum, poultry, and bonemeal imports
Trade restrictions on 27 U.S. companies
An anti-monopoly investigation into DuPont China
34% reciprocal tariffs on imports of US goods in retaliation for Trump’s trade war

April 7, 2025

President Donald Trump said he will impose an additional 50% tariff on China if Beijing does not withdraw its retaliatory tariffs on the United States.

"Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately," Trump said in a post on Truth Social.

How are the Tariffs Calculated?

The U.S. Trade Rep released a formula for calculating each country’s new tariff. In Trump’s own words, it’s based on how much other countries charge the U.S., plus extras like currency manipulation and trade barriers.

According to economists, the formula basically breaks down to this:

In other words:

Let’s take China as an example:

Countries that already pay lower tariffs are getting slapped with higher ones. The European Union, for instance, is getting hit with a 20% tariff, despite the WTO reporting their average tariff rate is only 5%.

Here's the calculation performed for the first few countries on the list:

What Does This Mean For Sellers Like Us?

If you’re importing from China even small, regular shipments, you’re now staring down a 34% hike on your landed cost. Whether you're private labeling or drop-shipping, this cuts straight into your margins.

Read more → HERE

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🤯 THE “$800 LOOPHOLE” IS CLOSING - AND IT’S GOING TO COST YOU!

If you’ve been sourcing products from China and shipping direct to the U.S., there’s a big change coming and it’s going to impact your margins.

President Trump just signed an executive order that shuts down what’s called the “de minimis” loophole. Up until now, any package shipped to the U.S. worth under $800 avoided import duties and heavy inspections. That meant a lot of sellers (and Chinese platforms like Shein and Temu) could move product cheaply, fast, and duty-free.

Starting May 2, that loophole closes for shipments coming from China and Hong Kong.

What that means for you:

A new 30% tariff hits those small parcels under $800
A minimum fee kicks in, eventually going up to $50 per shipment
More inspections, more delays, and more friction at customs

If you’re doing Amazon FBM (Fulfilled by Merchant) or using 3PLs in China to ship directly to U.S. customers, this just became a major issue. That cost advantage? Gone. And your pricing strategy? Probably needs a refresh.

Why this matters:

Roughly 1.4 billion of these small packages enter the U.S. every year—about 40% from China alone. That’s four million shipments a day. And a big chunk of those are Amazon orders, especially from sellers using direct shipping to avoid high storage or FBA fees.

For years, this loophole gave overseas sellers an edge: low costs, faster fulfillment, and no import taxes. But U.S. manufacturers have pushed back hard, saying it created unfair competition. And now, the government is listening.

Bottom line:

If your Amazon business relies on low-cost overseas fulfillment, this change could hit hard. But if you pivot early—tighten your ops, get ahead of pricing, and lock in better shipping strategies—you’ll be in a much stronger position than the sellers who wait until it’s too late.

To read more → HERE

👇TOP MUST READ STORIES THIS WEEK 👇

🚨 China hit brakes on TikTok deal after Trump announced wide-ranging tariffs - Read More

🚀 Amazon can now buy products from other websites for you - Read More

📢 The list of proposed US tariffs - Read More

😅 Amazon wants to turn your photo library into an online marketplace - Read More

🔥 Introducing the Amazon Nova Act - Read More

🔍 Despite Share Slide, Jeff Bezos and Amazon look likely to end up tariff winners - Read More

✅ Japan the last Amazon Marketplace where local sellers dominate - Read More

💰 Amazon says third-party sellers drive 60% of eCommerce sales - Read More

A great heads up from Abe Chomali!

🔥 START YOUR BEAUTY BRAND IN 5 MINUTES! (NO INVENTORY NEEDED)

Here’s 10 Takeaways From This Episode:

Launch a Beauty Brand in Minutes – Use platforms like Blanka to start your own beauty brand with zero minimums, no inventory risk, and ready-made high-quality North American products.
Test Products Without Upfront Investment – Upload a logo, generate product shots, and start selling immediately through Shopify or Wix. This enables fast, low-risk product-market testing.
Use DTC Bundling and Upsells – Increase average order value by bundling skincare, beard care, or cosmetic products and offering them as cart upsells or gifts with purchase.
Expand with Pre-Vetted Product Lines – With over 450 white-label SKUs available, you can easily expand into new categories (e.g., beard care → skincare → bath & body) using your existing customer base.
Order Inventory to Scale Faster – As products gain traction, bulk order inventory to unlock discounts and faster fulfillment, including 24-hour pick and pack with free warehousing.
Validate Your Brand Through Real Audience Data – Don’t assume your target market—analyze who’s actually buying your product and adjust your brand and marketing accordingly.
Use Nano-Influencers for Cost-Effective Growth – Partner with small, niche influencers who already have trust with their audience. Many will create content for free products, making this a powerful growth lever.

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WHERE IN THE WORLD IS THE BEARD GUY?

Can you find Norm in the picture below? Scroll to the bottom of this newsletter to see the answer!

📈 THE RISE OF U.S. MANUFACTURING…

Here are my favorite TIPS from this episode!

Target U.S. Manufacturing When Tariffs Create Opportunity: Use rising tariffs as leverage to move production stateside. Many U.S. factories are now cost-competitive, especially when factoring in freight, duties, and lead times.
Approach Manufacturing with Product Reengineering: When resourcing products, don’t replicate them—rethink materials and processes. Jason’s team replaced wood with resin and automated finishing, cutting production costs by over 60%.
Find & Acquire Small U.S. Factories with No Upfront Cash: Jason acquires plants through leveraged buyouts, using the factory’s own assets to finance the deal. Look for businesses run by retiring owners with strong teams and consistent processes.
Centralize Complex Manufacturing Across Owned Plants: U.S. products now involve multiple processes (e.g. plastic + metal + assembly). Jason’s strategy is to own all stages so that brands work with one partner, while he orchestrates production across plants behind the scenes.
Use Automation to Increase Safety and Reduce Labor Pressure: Invest in robotics with vision systems that detect and adjust to human proximity, improving workplace safety while reducing labor needs and injury risks.

🚨 Watch the full episode → here