Introduction:
Tariffs went up in early 2025—but now there’s a temporary break.
Starting May 14, 2025, the U.S. and China have agreed to lower tariffs for 90 days to ease trade tensions:
- The U.S. is reducing its tariffs on Chinese imports from 145% to 30%
- China is cutting its tariffs on U.S. goods from 125% to 10%
This pause gives ecommerce merchants a bit of breathing room.
But it’s not permanent. This is a 90-day reset—not a rollback.
If your margins were hit hard by the earlier hikes, now’s the time to regroup, re-source, and optimize before tariffs possibly rise again.
This post covers:
- Who’s still impacted (and who isn’t)
- What merchants should do during the tariff window
- Tools and tactics to stay resilient long-term
The Reality: Tariffs Are a Challenge—But Not For Everyone
Here’s what’s changed in 2025 so far:
- 10% baseline tariff on most U.S. imports.
- Up to 145% on some Chinese imports.
- End of de minimis (no more duty-free small parcels from China and Hong Kong).
That’s led to higher landed costs for some ecommerce sellers—particularly those sourcing heavily from China or shipping cross-border to the U.S.
But if you:
- Source domestically or from Mexico/Canada
- Sell primarily to domestic customers
- Import from lower-tariff countries (India, Vietnam, etc.)
Your costs may have remained stable.
Bottom line: This isn’t a blanket crisis. It’s a specific challenge for certain sourcing and logistics models.
What the 90-Day Tariff Reduction Actually Means
The U.S.–China tariff reprieve gives brands a temporary cost break:
- Chinese goods now face a 30% U.S. import tariff instead of 145%
- Chinese exports now face only 10% tariffs into China
- Effective May 14 to August 12, 2025
If you paused certain SKUs, pulled back on inventory, or started sourcing elsewhere… now’s your chance to:
- Move inventory through while rates are lower
- Negotiate with suppliers
- Test alternative sourcing—without tariff pressure
But a warning: Don’t assume this is permanent.
Merchants who get too comfortable may be caught off guard if tariffs snap back. This is your chance to optimize—not retreat.
If You’re Affected (or Preparing to Be): 5 Smart Moves to Stay Profitable
Even with tariffs reduced temporarily, smart merchants are using this moment to reinforce their operations—because trade conditions can shift fast.
Here’s how to use this 90-day window strategically.
(No need to fix what’s not broken. But if you’re impacted, here’s what’s working.)
1. Diversify Sourcing Without Disrupting Operations
Many brands are adding sourcing options—not abandoning current suppliers.
Think:
- Vietnam, India, Mexico – Countries with more favorable tariff rates
- Domestic or nearshore assembly – Final production in Mexico, Canada, or the U.S. can shift country-of-origin classifications and improve shipping speed
Even shifting 20–30% of your sourcing can make a noticeable difference.
Where to find alternative suppliers:
- Alibaba.com – Still useful, but filter for non-China suppliers (Vietnam, India, etc.)
- GlobalSources.com – Includes vetted manufacturers across Southeast Asia
- IndiaMART – Top sourcing hub for Indian suppliers and manufacturers
- Thomasnet – Directory of North American manufacturers for U.S.-based or nearshore options
- Spocket & Modalyst – Dropshipping platforms that include U.S. and EU-based suppliers
- Sourcing agents & trade shows – Many merchants are hiring sourcing consultants or attending regional trade expos (virtual or in-person) to vet factories in person
Supplier Tip: Ask your existing Chinese supplier if they operate factories in Vietnam, Cambodia, or India. Many do—and will shift production to retain your business.
2. Fine-Tune Import Practices
Simple changes can yield big savings:
- Audit HS codes to ensure lowest lawful duty rates.
- Tariff engineering: Make small product adjustments or final assembly in lower-tariff countries.
- Bulk importing: Consolidate shipments to pay tariffs once per container, not per item.
Import Tip: Many merchants are working with trade compliance consultants or using AI tools like TariffGuide.ai to optimize these steps.
3. Communicate Pricing Changes Transparently (If Needed)
If you need to adjust prices:
- Be transparent: A simple note like, “Due to global tariff updates, some prices have adjusted slightly to maintain product quality and fast shipping.”
- Bundle products: To increase perceived value and margin.
- Raise free shipping thresholds: To encourage larger baskets to absorb per-order costs.
4. Automate Duty Collection at Checkout
If tariffs mean customers are now responsible for new duties:
- Switch to Delivered Duty Paid (DDP) to avoid surprise fees at delivery.
- Use apps like Zonos, Calcurates, or Shopify Markets Pro to automate duty/tax calculation at checkout.
DDP Tip: Brands using DDP report lower cart abandonment rates, even with increased landed costs.
5. Boost Average Order Value to Offset Higher Costs
If tariffs add $5–$10 per order…
Increasing AOV by even $15–$25 can more than cover it.
OneClickUpsell (OCU) users are reporting AOV increases of up to 30% by:
- Offering pre-purchase add-ons
- Deploying one-click post-purchase offers
- Adding dynamic AI-driven upsells
- Creating product bundles
“Anyone who’s in the ecommerce space knows that margins are pretty thin and upsells are critical for making a profitable store.”
— Bashar, OneClickUpsell user with $311K in upsells
5 Tools to Make It Easier
Final Takeaway: Use the 90-Day Window Wisely
Tariffs may be lower for now.
But in ecommerce, volatility is the only constant—so we recommend you use this time to:
- Move inventory
- Rethink suppliers
- Tighten logistics
- And boost revenue-per-order to protect your margins long term
Ready to Grow AOV While Tariffs Are Low?
Whether tariffs return or not, increasing AOV is always smart.
Merchants using OneClickUpsell (OCU) are adding 10–30% to every order—keeping their margins strong in any climate.
👉 Start your 30-day free trial of OCU now.
Make every customer more profitable—tariff or no tariff.
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