Selling These Products? US Tariffs Could Impact Your Bottom Line
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President Donald Trump’s latest tariff increases have come into effect today, impacting 60 countries, including China, Vietnam, Japan, and the EU. Other territories, such as the UK and Australia, face the US government’s blanket 10% tariff on all US imports, which was introduced on April 5.
And while the increased tariffs are a big threat to dropshipping businesses in particular, small businesses across America are under pressure. If you’re thinking about selling online, or want to know if your inventory is at risk, I’ll walk you through the products most affected by Trump’s new tariffs and what steps you can take to prepare for the future.
Rising Prices in 2025
President Trump has targeted 60 countries, labelled as the “worst offenders”, with higher taxes. These range from 20% to 104%, with goods from China impacted the hardest.
For business owners, these are troubling and uncertain times, especially if you sell certain products that depend on imports.
A report by Yale University analyzed the impact of the tariffs (as of April 2, meaning it doesn’t take into account the latest retaliatory tariffs, which saw China’s total levies increase from 54% to 104% and tariffs on US goods arriving in China rise to 84%) on a range of commodities. Here are the top five biggest percentage changes with the 2025 US tariffs:
- Leather products – +18.3%
- Wearing apparel – +16.9%
- Crops – +13.3%
- Metals (critical minerals) – +12.3%
- Wool, silk – +10.9%
Of course, not all small businesses dabble in raw material imports, but it’s interesting to note that leather goods and clothing are facing the steepest price increases due to Trump’s tariffs. Let’s take a closer look at some of the biggest affected industries:
| Products | How will it be impacted? |
|---|---|
| Clothing and accessories | According to the Yale report mentioned above, clothing and accessories (such as shoes and handbags), as well as wool and silk products, could see prices increase up to 10-20%, with apparel prices as a whole rising to 33%. So, it’s clear that this is an industry experts predict will be hit dramatically by the US tariffs. |
| Alcohol | If you’re selling alcohol online and importing wines and liquors, expect prices to increase and a possible drop in sales as consumers cut back on non-essential goods. Thankfully, the EU has currently removed US bourbon and whiskeys from retaliatory measures – for now – but imported goods from the EU, for example, will face a 20% tariff. |
| Jewelry | Jewelry businesses and luxury brands are at risk with Trump’s tariffs affecting shipments of diamonds, gems, and other materials. For example, nearly $33 billion in jewelry and gem exports from India went to the US in 2024, but India has been given a 26% tariff. |
| Baking goods | The baking industry faces an uncertain future since Trump’s tariffs target imported goods, such as chocolate. In fact, tariffs on select countries, including China, Mexico, and Canada, could cost the US baking industry $454 million this year, with ingredient costs rising and supply chain disruptions. |
What Can Your Business Do?
For US small businesses, the future might look bleak. There are a lot of unknowns with other countries around the world responding to Trump’s tariffs, and possible trade wars developing. It’s pretty much impossible to predict the impact that this could truly have on the world’s economies.
That said, there are a few things you can do to prepare your business:
- Assess your product pricing – To avoid losing money, you could raise the prices of your products. Of course, there’s the fear that you might push customers away with expensive fees, but your profit margin is at risk otherwise.
- Consider material or packaging swaps – The goal of Trump’s tariffs is to prioritize US manufacturing and production, so it could be worth seeing if you could source local materials or keep manufacturing close to home. That said, this comes with its challenges since materials will often need to be imported anyway, and the US isn’t equipped to handle production at this scale yet.
- Simplify your inventory – If you reduce the number of products you’re selling, you’ll reduce the amount to pay on imports. Focus on your bestsellers and essential products for the time being.
- Avoid product development – Given that tariffs are putting businesses into survival mode, now isn’t the time to test or develop new products. It’ll be harder to manufacture and ship, and customers are already tightening their wallets as prices increase, so they won’t be looking to splurge.
- Pause product imports – If you have a stockpile of inventory already, you could stop any imports to avoid the high tariffs. However, this is only a temporary solution to ride out the ongoing trade discussions, and there might not be light at the end of the tunnel. Still, it could give you a small reprieve to work out the next steps and future solutions.
- Review other business costs – As budgets tighten, consider where you can reduce spending across your business. For example, if you’re selling via a platform that charges high transaction fees, it could be worth switching to an ecommerce platform that waives these charges.
Unfortunately, smaller businesses will be hurt the most because of these government actions. They won’t be able to absorb the increasing costs with ease, meaning many will have to make difficult financial decisions to stay afloat.
Has your small business been impacted by the latest US tariffs? We’d love to hear from you in the comments. ⬇️
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