The news: Some Amazon sellers are reconsidering their participation in this year’s Prime Day sale due to President Donald Trump’s China tariffs, according to a Reuters report.

How sellers are coping: Faced with 145% duties on China imports, some are discounting less merchandise, while others are sitting out the sale entirely to protect their margins. Many in the latter camp are holding back merchandise imported before the tariffs kicked in to maximize full-price sales, help offset higher future costs, and buy time to look for sourcing alternatives.

• Tote bag company Bogg Bag is skipping Prime Day to keep inventory available for retailers like Macy’s, Bloomingdale’s, and Dick’s Sporting Goods, where products can be sold at full price or at a smaller discount, CEO Kim Vaccarella told Reuters.
• While previous Prime Days have been significant sales drivers, tariffs have thrown discounting “out the window,” Rick Sliter, CEO of pillow company MedCline, said.
• With no clear idea of how much tariffs will cost given day-to-day policy shifts, many sellers simply aren’t in a position to offer deals.

Our take: Given Prime Day’s importance as a sales driver, most sellers will likely see participation as nonnegotiable, especially as consumer spending grows more uncertain. But the event may not be quite the boost to Amazon’s revenues as it has previously been, even as the retailer prepares to double the length to four days.

• Amazon’s ad business could be the first to feel the hit, as cautious sellers cut promotional spending.
• Fewer, smaller discounts could make Prime Day less enticing to shoppers—opening the door to competitors like Walmart that are able to offer better value.