How The Recent Tariffs Impact Your Ecommerce Store

Last updated: 3/10/2025

New U.S. tariffs on products made in China, Mexico and Canada are expected to increase the prices American consumers have to pay for a wide array of products. From the ultra-cheap apparel sold through on online shopping platforms to toys and electronic devices such as computers and cellphones.

Regardless of what is impacted by the recent tariffs, they all are raising important questions for those who own or run ecommerce businesses (including ecommerce solutions partners that support them).

Let's dive into what this means for those businesses.

What are tariffs?

Tariffs are a type of import duty or tax that a government imposes on goods entering the country.

They have been used for centuries to generate revenue and protect domestic industries for thousands of years. Tariffs are typically calculated as a percentage of the imported goods’ value and are paid by the importer.

For example, if a company purchases goods from Shenzhen, China, and ships them to the Port of Los Angeles, it will be responsible for paying duties, taxes, and tariffs upon arrival. Before the goods can be transported to their next destination, the importer must pay all required fees to U.S. Customs and Border Protection (CBP).

What is happening with the tariffs against China, Canada, and Mexico?

As of February 1st, the United States executive branch decided they would be implementing extra taxes (tariffs) on merchandise coming into the U.S. from China, Mexico, and Canada.

The China tariffs were recently doubled from 10% to 20%. Mexico & Canada received a 25% tax on all their goods coming into the United States.

On Thursday, March 6, President Donald Trump said that he has postponed the 25% tariff on goods and services from Canada and Mexico for a month. This is the second one-month postponement Trump has announced since first unveiling the new tariffs in early February. However, it is rumored that the tariffs involving Canada and Mexico will go into full effect starting April 2nd, 2025.

Together, China, Mexico and Canada accounted for more than 40% of imports into the US in 2024 according to the BBC.

To recap, here are the tariffs recently imposed by country of origin...

China Tariffs

20% tax on their products imported into the United States from China.Shipments to the United States that include products from China will also be taxed at 20%, even if some items in the shipment do not originate from China. Exports to China will also incur a 10-15% tariff. 

Canada Tariffs

25% tax on all goods imported from Canada into the United States. This tariff applies to a wide range of products with no exemptions for specific industries or product categories. 

Mexico Tariffs

25% tax on all goods imported from Mexico. This tariff was implemented as part of a broader trade strategy and applies to a wide range of products, including agricultural goods, manufactured goods, and raw materials.

What goods are affected by the tariffs?

According CBS News, some products that are made in the U.S. but use imported materials could also see higher prices, such as automobiles that are manufactured domestically but rely on parts imported from Canada, Mexico or China.

President Trump said he plans to raise and double his planned tariffs on steel and aluminum from Canada to 50% as trade war intensifies.

The items impacted by the recent tariffs are nearly endless, and certainly apply to virtually all ecommerce businesses here in the United States. However, some, due to their sheer volume of consumption, are worth noting more than others.

Top goods affected by tariffs:

• Vegetables & fruit
• Beef, poultry, and other animal products
• Beer & spirits
• Electronics
• Automobiles
• Gasoline
• Cotton

How these tariffs will affect the ecommerce industry?

The implementation of new tariffs in major eCommerce markets like China, Canada, and Mexico have the potential to significantly impact and reshape the way online sellers conduct their business.

These tariffs, essentially taxes on imported goods, can lead to a cascade of effects that ripple through the entire ecommerce ecosystem.

• Increased Costs
• Supply Chain Disruptions
• Market Volatility
• Shift in Trade Patterns
• Impact on Small Businesses
• Overall Economic Impact

How to minimize the impact of tariffs on your business

The options available to lessen the impact of tariffs are relatively few.

Aside from any creative workarounds specific to potentially niche industries, most ecommerce businesses are left with a couple options...

Consider exploring other manufacturing partners.

Vendors in Vietnam, Cambodia, the Philippines, and other countries in Southeast Asia offer similar production capabilities at comparable costs. Likewise, it may be worth exploring production in the United States (part of the tariff's intent), though this is often cost prohibitive for most.

Pass costs to consumers or suppliers.

Increasing prices for consumers or negotiating lower prices from foreign suppliers may help offset the extra tariff cost. However, when tariffs are in play, everyone is feeling the effects and may not be willing to negotiate depending on their exposure to these costs.

The implementation of new tariffs in key ecommerce markets can have far-reaching consequences for online sellers, consumers, and the broader economy. Businesses need to be aware of the potential risks and challenges associated with tariffs and develop strategies to mitigate their impact. This may involve diversifying their supply chains, adjusting their pricing strategies, or exploring new markets and opportunities.