US Tariffs: How Brands Can Steady the Ship

Author
Chaz Green, VP, Operational Excellence
Published Date
April 25, 2025

I recently had a really insightful virtual sit-down with Ronan Croke, Director of Credit at Wayflyer. For e-commerce businesses, this is likely a major concern right now: US tariffs. We also had Niamh Garry, Funding Analyst at Wayflyer, expertly guiding our discussion. It was a really informative session where we went into the details and there's a lot to learn when it comes to navigating these tariffs.

Now, if you're the type who likes to go deep into the specifics, you can watch the full video of our webinar above. We covered a lot of ground, but if you're juggling a million things (like most of us in e-commerce!), and just need a quick overview, I’ll try to summarize the most crucial takeaways.

Tariff Numbers

Ronan laid out the tariff situation pretty clearly:

The big takeaway here? The 145% tariff on goods from China is the headline figure that requires your attention if your supply chain involves China.

Important Note: The tariff figures and information provided here offer a snapshot of the situation discussed during the Stord/Wayflyer webinar on April 22nd, 2025, and are intended to illustrate the potential scale of impact. Given the dynamic nature of international trade policies, these numbers and policies may have changed already. Always review official government and trade resources for the most accurate and updated tariff information.

Uncertainty and Chaos

Given these often changing tariff policies, what's the immediate concern from everyone in the e-commerce sector? Uncertainty.

As I put it during our conversation, "It's kind of chaotic right now. Brands don't really know what to expect. Things are changing every day."

That "don't know what to expect" part is huge. It leads to concerns about shrinking margins, especially for those with already tight cost structures.

Also, the thought of uprooting and shifting your entire supply chain and fulfillment is a massive undertaking with a lot of moving pieces. There's inventory, positioning, technologies, and a whole lot of complexity involved. The uncertainty and constant change make it even tougher to plan and execute. Any decision you make in haste could be disastrous depending on the next change in policy.

De Minimis Rule

We also talked about a significant shift:

• No More Duty-Free Small Packages from China: The rule that allowed certain goods under $800 to enter the US duty-free is gone for imports from China. This is HUGE for anyone drop-shipping directly to consumers. That $100 item could suddenly cost you $245 by the time it lands.

• Bulk Imports Less Affected (For Now): If you're bringing in larger shipments to your own warehouse or a 3PL, the impact of the de minimis rule change is less direct, as tariffs are assessed on the cost value of the bulk shipment.

Initial Strategies to Explore

With the uncertainties and understandable concerns, Ronan offered some practical strategies that brands are starting to explore to navigate this turbulence:

• Consider Price Adjustments: Some brands are looking at whether they can absorb some of the cost or need to adjust their pricing.
• Talk to Suppliers: Renegotiating with suppliers to potentially share the burden or find cost efficiencies is on the table for many.
• Re-evaluate the Supply Chain: This is a big one. It’s looking at alternative sourcing locations and potentially shifting away from China.
• Strategic Stockpiling: Brands that saw this coming and built up inventory might have bought themselves some valuable time to figure things out.

These aren't easy fixes, but they represent the initial steps brands are considering to steady their ships.

Source Locally

While a lot of the tariff talk can sound pretty grim, there’s a potential bright spot for some e-commerce businesses, mainly those already sourcing within the US.

As Ronan puts it, "Those brands that already are sourcing domestically in the US have a really great competitive advantage at the moment. They probably don't need to concern themselves about raising prices while it is maybe some of their competitors might be."

For businesses with domestic supply chains, this situation may present a distinct advantage, potentially allowing them to maintain current pricing and capture market share. It's a reminder that in times of disruption, new opportunities can emerge.

Agile Advantage

There's no simple solution when it comes to navigating tariffs. The policies are fluid, and what's true today might change tomorrow. My advice, echoing a core principle in the e-commerce world, is to stay agile.

As passionate e-commerce business founders and builders, you've poured your heart into your brands. Moving operations due to tariffs is a significant and potentially risky decision. My recommendation is to resist immediate, impulsive actions.

Take the time to thoroughly analyze your options, do the math, and carefully select the right fulfillment partners. Deciding as soon as possible is necessary, but not at the expense of sound judgment. Dig into the details now to mitigate potential risks down the line.