Leveraging its in-house global trade and compliance expertise, Passport breaks down how the April 2 and subsequent tariff announcements are creating new challenges for international e-commerce—and what brands can do to adjust their strategies.
The Trump administration has announced major changes to U.S. tariff policy throughout April 2025—making waves across global e-commerce. A 10% blanket tariff on all imports, the end of de minimis for China and Hong Kong, and escalating reciprocal tariffs for dozens of countries have created one of the biggest shake-ups in recent trade history.
For e-commerce brands selling internationally, the consequences are already unfolding: higher costs, supply chain disruptions, and stricter customs requirements. According to a recent research survey conducted by Passport in partnership with Drive Research, 81% of e-commerce decision-makers say shifting tariffs and regulations could put their global strategy at risk.
With the loss of duty-free shipping and greater complexity at the border, brands must quickly rethink pricing, fulfillment, and logistics. Now's the time to take a proactive approach—before these changes start cutting into profit margins and affecting customer experience.
What are Tariffs?
Tariffs are taxes or duties imposed by a government on imported goods. They're used to generate revenue, protect domestic industries, or influence foreign trade relationships. Most tariffs fall into two categories:
What is De Minimis?
De minimis refers to the threshold below which imported goods can enter a country duty-free or with simplified customs clearance. For e-commerce brands, this threshold plays a key role in keeping cross-border shipping cost-effective, especially for low-value, direct-to-consumer (DTC) orders.
Since 2016, the U.S. de minimis threshold has been $800 per person, per day, offering a significant advantage to e-commerce brands by reducing landed costs and avoiding delays through a simplified customs clearance process.
The trade policy updates announced on April 2 mark a substantial adjustment in how e-commerce imports are taxed and processed at the border. Brands that ship globally need to keep up with these critical developments to avoid added costs and compliance issues.
De Minimis Is Ending
The U.S. government has confirmed plans to eliminate the de minimis exemption for all countries once customs systems are equipped to support full enforcement. For now, the most immediate changes apply to shipments from China and Hong Kong:
These updates phase out a long-standing cost-saving tool for DTC brands shipping low-value parcels and are expected to significantly increase landed costs for many e-commerce businesses.
Alongside the end of de minimis benefits, a series of new tariffs are being introduced in phases—some of which are already in effect, with more to come in the weeks ahead.
View the full U.S. Tariff Rates by Country list
For merchants, the implications of these new tariffs and the end of de minimis will depend heavily on sourcing, fulfillment models, and shipping strategy. Understanding how these policy updates affect different business types is key to identifying the right operational adjustments.
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Whether importing from China, fulfilling regionally, or managing multiple international markets, there are steps every e-commerce brand can take now to stay ahead of these changes.
1. Adjust Pricing and Duty Calculations
Make sure your storefront reflects new tariffs and duties clearly—either built into product pricing or broken out at checkout.
2. Consolidate Shipments Where Possible
Reduce brokerage fees and customs processing costs for orders that are not eligible for de minimis exemption by bundling orders into formal entries instead of multiple low-value shipments—especially as de minimis thresholds disappear.
3. Review Your Import Strategy
Evaluate whether a "first sale" valuationfor U.S. imports (where duties are based on the price paid to the original manufacturer) could help lower your duty liability. This method requires careful compliance with documentation, export designation, and proof of bona fide sales.
4. Shift to In-Country Fulfillment
Reduce tariff exposure and delivery delays by warehousing inventory within your key markets. In-country fulfillment can improve customer experience and shield your brand from ongoing cross-border disruptions.
5. Optimize Country of Origin and Harmonized Tariff Schedule Classifications
Review your sourcing countries and product design to minimize duties and take advantage of preferential trade agreements where applicable. Accurate Harmonized System (HS) codes and country of origin documentation are essential for compliance and long-term cost savings.
6. File for Duty Drawback on Exports
If you're re-exporting goods that were taxed at import, you may be eligible to recover duties paid. Duty drawback allows merchants to recover 99% of duties and fees paid on goods that are imported and then subsequently exported in the same condition. This can also apply to raw materials and packaging that are imported into the U.S. and used to manufacture a finished product.
The April tariff changes mark a turning point for cross-border e-commerce. As tariffs rise and de minimis benefits disappear, brands must rethink their global strategies to protect profitability. Success in this new environment will depend on operational flexibility, smarter fulfillment models, and a clear understanding of international trade dynamics.
To keep up with these changes, TrumpTradeTracker.com provides real-time updates on policy announcements, tariff shifts, and expert insights into what they mean for global commerce. It's a practical resource for following developments as they unfold—and for understanding how they could shape the future of international selling.
In a more complex and regulated trade environment, long-term success will belong to brands that stay informed, adapt early, and plan ahead.
This article includes findings from an online survey conducted by Drive Research in partnership with Passport. The study surveyed 100 U.S.-based e-commerce decision-makers between Feb. 13 and March 7, 2025, to assess global expansion plans, regulatory concerns, and operational challenges. The results carry a margin of error of ±10% at a 95% confidence level.
This story was produced by Passport and reviewed and distributed by Stacker.
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