Trump’s Tariffs Are Here: What Your Dropshipping Business Can Do Next

For clarity, these are the tariff actions that Trump will impose on foreign goods:

1. April 2 2025 – On “Liberation Day,” Trump announced a universal 10% tariff on all US imports, which was set into motion April 5
2. April 9 2025 – Trump will impose country-specific tariffs, with levies on certain countries like India, Vietnam, Cambodia, and Bangladesh that range from 10% to 54%.

China, the country most affected by the tariffs with a total levy of 54%, is a prime destination for dropshipping suppliers and accounted for 14.5% of the global market in 2023.* So, if you’re relying on Chinese suppliers for your online store, expect higher product costs, longer shipping times, and supply chain disruptions as suppliers adjust to these economic changes.

Trump will also end de-minimis on May 2 2025. This exemption allowed Chinese and Hong Kong businesses to make small-value shipments to America under $800 without additional import fees. After May 2, these shipments will now be subject to a duty rate of either 30% of their value, or $25 dollar per item. So, if you’re importing cheap products from China, this is something else to keep in mind.

Though these tariffs threaten your ecommerce profit margins, it’s still possible to adapt to these changes and protect your store’s revenue.

For one, now’s the time to look into suppliers from other markets that haven’t been impacted by these tariffs, especially if you’re already sourcing from China. It’s also worth considering whether to expand your business into other regions, such as the EU and the UK, that have growing ecommerce markets you can tap into.

Additionally, you may need to start looking into high-margin products, which will help you maintain healthier profit margins despite these global cost increases. This includes coveted items like watches, jewelry, and beauty products that you can sell for a marked up price without putting off your customers.

While Trump’s tariffs are a genuine concern for smaller, dropshipping businesses, this doesn’t have to be an apocalyptic scenario. By keeping tabs on the global economy and adjusting your ecommerce strategy, your dropshipping business can evolve and survive these tough changes.

Reassess your suppliers, pricing, and products, and you’ll give your business the best chance of protecting your profits during this hectic period.