The U.S. government has announced new tariffs on imports from Canada, Mexico, and China, which could significantly impact global supply chains, e-commerce businesses, and fulfillment logistics. If your company relies on imported goods from these countries, or ships to these countries often, now is the time to assess how these changes could affect your operations—and why keeping your inventory and fulfillment in the U.S. might be the best move.
TRG is closely monitoring the developing changes to global trade. Although the tariffs on Canada and Mexico are currently paused, it’s important to highlight these changes and prepare for what could come next.
What Are the New Tariffs?
The newly imposed tariffs target a range of goods from Canada, Mexico, and China, focusing on industries such as manufacturing, raw materials, and consumer products. These are the key points of the new tariffs:
- A 25% tax on imports from Canada and Mexico
- A lower 10% tariff on energy exports from Canada
- An additional 10% tax on imports from China
The new tariffs are part of evolving negotiations, and companies should stay vigilant as diplomacy between the US and other nations develops during the coming months. At the time of this article’s publication, the US has already decided to pause new tariffs on Canada and Mexico for 30 days, after those countries’ retaliation efforts.
With the new executive order, some consumer products from China may see tariffs as high as 35%. This cumulative tax dates back to negotiations in 2024, when the US reduced tariffs on $120 billion of Chinese goods from 15% to 7.5% but maintained a 25% tariff on $250 billion worth of Chinese imports. For commercial products like EV batteries, solar cells, and raw materials like steel and aluminum, cumulative tariffs can reach 50% and above.
The Effect on De Minimis
For e-commerce companies, a crucial product of these changes is the tightening of the “de minimis” exemption: a 100-year-old loophole that foreign companies have used to access the US market more efficiently.
Previously, this exemption allowed foreign e-commerce giants like Temu, Shein, and AliExpress to ship low-cost goods to U.S. consumers without paying import duties. This previously applied to packages valued at less than $800, but under the new executive order, that benefit is expected to diminish or disappear entirely.
Since the new tariffs were enacted immediately under President Trump’s emergency declaration, customs brokers and border agents are expecting chaos at major ports. As the de minimis loophole closes, previously exempt products are also subject to increased reporting, i.e., more paperwork and more routine checks from authorities. This will likely cause immediate shipment delays for packages coming from China (as well as Canada and Mexico, when and if the current suspension on additional tariffs ends).
How Do the New Tariffs Affect E-Commerce Businesses?
For businesses that source products from China, Canada, or Mexico, these tariffs could lead to increased costs, longer shipping times, and more complicated customs procedures. Additionally, companies that export to Canada, Mexico, and China, should expect changes in demand. The following are key challenges e-commerce sellers may face:
- Higher Prices on Imported Goods – Increased tariffs could make sourcing from overseas suppliers significantly more expensive.
- Shipping and Customs Delays – Stricter regulations and tariff enforcement may cause shipping slowdowns, affecting current shipments and inventory management.
- Retaliatory Tariffs – Canada and Mexico planned retaliatory tariffs in response, though they are currently suspended for 1 month. If you ship to these countries, brace for a decreased demand in these markets as prices rise.
- Impact on Fast-Fashion and Low-Cost E-Commerce – Retailers that depend on platforms like Shein and Temu for dropshipping or reselling may see their cost advantages shrink.
Why U.S.-Based Fulfillment Is Now More Important Than Ever
With international supply chains facing new hurdles, e-commerce businesses can mitigate additional costs by leveraging U.S.-based fulfillment and logistics partners. Here are 4 ways that using a US-based fulfillment company may help businesses combat changes in tariffs:
- Localize Fulfillment — Consider bulk importing products to US fulfillment centers, especially while some tariffs are paused. This will help manage rising costs and keep your supply chain within the US for the foreseeable future.
- Faster Shipping — While the developing tariffs remain fluid, US-based fulfillment eliminates international transit delays and bottlenecks at customs.
- Avoiding Unexpected Tariffs — By moving inventory from product sources to the U.S., sellers can bypass risk and have more time to navigate sudden tariff increases in the near future.
- Assess your Supply Chain — Talk to your fulfillment partner(s) and review your supply chain. Managers at TRG can help you navigate weak points under new tariffs and identify alternative suppliers, international fulfillment companies, and ways to save on new costs.
TRG Can Help You Stay Ahead
At TRG, we specialize in cost-effective fulfillment solutions that keep your business agile in unpredictable times like these. Whether you’re an established e-commerce business with a backup plan, or you’ve been seriously impacted by new tariffs and are seeking a solution, TRG is here to keep you ahead of the game. Having a reliable, US-based logistics partner can help you reduce costs, improve your overall supply chain, and navigate new challenges in 2025 and beyond.
If you’re concerned about how these changes might impact your business, give us a call to review your options, and find a strategy that works best for you.