The rules of global trade are shifting once again and this time, the impact could be massive for thousands of e-commerce brands.
On April 2, 2025, President Donald J. Trump announced sweeping changes to U.S. trade policy in which a new 10% blanket tariff now applies to most imports. Also, duty-free thresholds for low-value shipments from China and Hong Kong are ending and postal shipments from these regions will face steep duties and fees.
One of the biggest changes comes May 2, when the de minimis rule will be scrapped for China and Hong Kong. That rule had allowed consumer orders under $800 to enter the U.S. duty free through a simplified customs clearance. After May 2, every Chinese-made product, no matter how small, must go through full customs processing and pay duties and fees.
For e-commerce companies that source from Asia, these changes could disrupt everything, from pricing and profit margins to delivery times and customer satisfaction.
Thomas Taggart, Head of Global Trade at Passport, has seen these kinds of disruptions before. With more than 20 years of experience in international shipping and trade compliance, he helps brands navigate cross-border complexity.
“Higher tariffs and stricter customs rules mean longer delivery times, unexpected fees, and more customer complaints,” Taggart said. “If brands don’t adjust quickly, they could lose both revenue and trust.”
To survive and thrive amid these changes, e-commerce businesses will need to rethink everything from pricing and sourcing to logistics and compliance. Taggart suggests eight practical steps brands can take now to stay ahead of the changes and protect their bottom line.
What E-Commerce Brands Should Do Now
1) Update Pricing Strategies
Build new tariffs into your pricing models now. Be transparent with customers about duties at checkout. Surprises at delivery lead to refused deliveries and negative reviews.
2) Move Inventory Closer to Customers
Consider regional warehouses or third-party fulfillment centers in your largest markets. In-country fulfillment can cut shipping times, avoid customs issues and reduce exposure to new tariffs, especially as China negotiates bilateral trade agreements with top e-commerce markets.
3) Explore Alternative Manufacturing Hubs
China has long been the center of global e-commerce sourcing. But Vietnam, India and Mexico may now offer more stable, tariff-friendly options. Mexico, for example, currently benefits from duty-free access under the USMCA agreement.
4) Review and Optimize HS Codes
Classifying products with the optimal Harmonized System (HS) commodity code can reduce your tariff bill. The classification and country of manufacture drive the tariff rate. Large retailers have done the legwork to ensure that their commodities can compliantly claim the lowest duty rate.
5) Verify Country of Origin
Remember that tariffs apply to the Country of Origin (COO), not the Ship From country. A product made in Vietnam that ships from the US to Canada will not face Canada’s 25% Surtax, where the same product made in the US would.
6) Use Delivered Duty Paid (DDP) Shipping
DDP means the seller collects all import duties and taxes upfront so there’s nothing more due on delivery. This avoids surprises for customers and simplifies the checkout experience. It can improve trust and conversion rates, especially with U.S. buyers who are not used to paying duties on low-value ecommerce orders.
7) Evaluate Duty Drawback Opportunities
If you import finished goods into the US then re-export them to international consumers, you may be eligible to recover nearly all import duties and fees. This applies to items shipped out in the same condition or incorporated into another product in the US before re-export.
8) Be Cautious with Customs Values
The duty rate applies to the value declared to customs, and there are some very dubious schemes being floated to reduce this value. While you may be able to declare a value less than what your consumer paid at checkout, customs valuations are very complex. A reduced value is legal in some cases, but it’s risky and closely scrutinized by U.S. Customs. Talk to your customs broker or consult a trade attorney to be sure.
What Comes Next
The U.S. is signaling a clear shift toward tighter import controls and less dependence on Chinese goods. The elimination of de minimis across the board is likely only a matter of time. For brands that depend on seamless cross-border trade, the window for easy, cheap global sourcing is closing. That doesn’t mean global e-commerce is over. But it does mean adaptation is no longer optional. In these new times, brands that succeed will be those who take compliance seriously, localize fulfillment, diversify sourcing and communicate clearly with their customers.
