E-commerce Tariffs: Vital Info 2025 💰

Trump's 2025 tariff changes eliminated the de minimis rule on May 2nd. Every import from China now faces duties, with rates reaching up to 145%. Previously exempt items under $800 now carry full tariff obligations.

E-commerce sellers relying on Chinese suppliers, drop-shipping models, or FBA operations face immediate cost increases. Profit margins on low-value goods have been compressed significantly, with some categories becoming unviable at current pricing structures.

This analysis covers the specific tariff changes, quantified cost impacts across product categories, and operational adjustments required for continued profitability

May 2025 Tariff Update: What’s New?

As of May 2, 2025, President Trump has:

• Eliminated de minimis exemptions for all Chinese and Hong Kong goods, regardless of value.
• Reinstated Section 301 tariffs across electronics, textiles, batteries, and EV parts, ranging from 30% to 145%, with selective relief on American exports to China. 

On May 8, 2025, President Donald Trump and UK Prime Minister Keir Starmer announced a new trade agreement aimed at reducing certain tariffs between the United States and the United Kingdom.

What Are Trump’s Tariffs?

Trump’s tariffs are taxes imposed on imported goods aimed at reducing the U.S. trade deficit and encouraging domestic production. These duties are added on top of standard import costs and are paid by the e-commerce businesses.

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Reinstated Section 301 Tariffs

Trump has reinstated and expanded Section 301 tariffs on a wide range of Chinese goods. A few highlights:

• Consumer electronics: Laptops, tablets, smartphones, tariffs up to 145%
• Automotive parts and EV batteries: ~30%–60%
• Textiles and apparel: Up to 25%

These rates apply at the point of import, meaning sellers who fulfill from U.S. warehouses or via FBA will absorb the costs.

De Minimis Exemption Removed (May 2025)

Until recently, e-commerce sellers could import items worth under $800 duty-free from China, thanks to the “de minimis” rule. That ended on May 2.

Now, every single import from China or Hong Kong is subject to customs declarations and duties, dramatically increasing fulfillment costs on cheap or bulk-shipped goods.

Low-cost goods like phone cases, beauty tools, or pet supplies now carry tariffs that can wipe out margins for Amazon FBA and Shopify dropshippers.

Steel & Aluminum Tariffs (Ongoing Since 2018)

These are legacy tariffs originally introduced under Trump’s first administration in 2018 and still in effect. They impose:

• 25% on imported steel
• 10% on imported aluminum

These tariffs primarily impact manufacturers and sellers dealing with tools, machinery, kitchenware, packaging, or anything involving metal components.

For example, A U.S.-based seller importing aluminum drinkware from China will pay the 10% aluminum tariff in addition to any new Section 301 duties, potentially doubling their landed cost.

Reinstated Consumer Goods Tariffs (May 2025)

This refers to the reapplication of duties on categories like apparel, textiles, footwear, and home goods, which had been relaxed or waived under prior administrations. These are now back at an average of ~20%.

Products affected include:

• Bedding, towels, curtains
• Clothing and fashion accessories
• Rugs, linens, and soft furnishings

These goods are popular in Shopify stores, Etsy listings, and Amazon private label brands. Even low-cost imports are now subject to duties, squeezing margins unless pricing is adjusted.

Importing throw blankets from China used to cost $1.10 per unit landed. With a 20% tariff, it’s now $1.32, not including shipping. Multiply across containers, and cost balloon.

Key Elements of the US-UK Trade Deal

• Automotive Tariffs: The United States agreed to lower tariffs on British car imports from 27.5% to 10% for up to 100,000 vehicles annually.
• Steel and Aluminum: Tariffs on UK steel and aluminum exports to the US were eliminated, providing relief to these key British industries.
• Agricultural Products: The UK agreed to remove its 19% tariff on US ethanol imports, allowing up to 1.4 billion liters annually, and to permit up to 13,000 metric tons of US beef imports, up from a previous cap of 1,000 metric tons.
• Aerospace Components: British aerospace parts, including Rolls-Royce engines, were exempted from US import tariffs, benefiting the UK's aerospace industry.

Limitations and Ongoing Tariffs

Despite these concessions, a 10% baseline tariff remains on most UK goods exported to the US. This deal is considered a preliminary framework, with further negotiations anticipated to address other sectors such as digital services and pharmaceuticals. 

For e-commerce sellers, this agreement may offer some cost relief on specific products, but many goods still face tariffs. These moves are already reshaping global sourcing strategies, and the e-commerce sellers who adapt fastest will come out ahead.

How Tariffs Are Hitting E-commerce Sellers in 2025

Here’s a clear look at how current tariffs are impacting sellers working with international suppliers.

*These examples are fictional but based on realistic cost structures and current policy changes.

Electronics Seller 

Volume: 2,000 units/month
Tariff Impact: Section 301 duties up to 145% on consumer electronics

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To keep a $5 profit margin, the seller must now price each unit at $32+, up from the original $17 price point. That’s a massive jump, and most customers won’t follow.

Home Goods Importer

Volume: One 40ft container (1,000 units)
Tariff Impact: 25% on textiles (common on soft furnishings)

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Unit cost rises from $8.00 to $9.50. That may seem small, but when margins are thin and retailers push back on price increases, it puts sellers at a serious disadvantage, especially against domestic stock competitors.

This will even affect sellers who sell craft products on Etsy but still import parts from China. 

What the 2025 Tariff Changes Mean for E-commerce Sellers

These tariffs are now reshaping how e-commerce businesses manage costs, cash flow, and competitiveness. Based on the current data and real-world pricing shifts, here’s what’s now clear:

1. Low-Margin, High-Volume Products Are at Risk

For sellers who deal in electronics, accessories, or home goods at scale, even a 20% duty can turn profitable SKUs into liabilities. Sellers face two losing options:

• Raise prices and sacrifice conversions
• Absorb costs and erode profitability

Either way, the model breaks down fast without a margin buffer or sourcing shift.

2. Mid-Tier Sellers Are Facing a Cash Flow Crunch

A $2,000–$10,000 tariff bill per container is now standard for China-origin inventory. That’s cash locked in stock, not marketing or new product launches. For seasonal sellers, FBA operators, and growing brands, this makes it hard to stay liquid, slows scaling and increases risk.

3. Pricing Adjustments Alone are not Enough

Global competition means someone else is sourcing the same SKU from Vietnam, Turkey, or Mexico with zero duties. If sellers can’t match landed cost economics, your only alternative is differentiation or operational efficiency.

4. Sellers Must Level up Their Accounting 

Manual spreadsheets can’t handle:

• Variable tariffs across SKUs
• Import classes by country
• Real-time landed cost shifts

To stay compliant and competitive, sellers need:

• Clear landed cost tracking across platforms
• Automated COGS with tariff categorization
• Real-time profitability insights at the product level

This might even mean hiring an accountant who can navigate this new way of accounting for tariffs. 

Why Your E-commerce Accounting Matters Now More Than Ever

Tariffs have added a volatile new layer to e-commerce operations. But the real danger isn’t just the duties, it’s misreporting them.

Without accurate, automated accounting:

• You risk overstating profit and underreporting tax
• You can’t forecast cash flow or plan reorders
• You lose visibility on how duties eat into margins by SKU, channel, and country

This is no longer just a compliance issue. It's a strategic priority.

How Link My Books Can Help With Your E-commerce Accounting

Link My Books is purpose-built for e-commerce sellers navigating complex sales, fees, taxes, and now, tariffs. It integrates with Amazon, eBay, Shopify, Etsy, Walmart and more, syncing directly into Xero or QuickBooks.

Here’s how it helps sellers thrive in a post-de minimis world:

✅ Auto-syncs all sales, fees, refunds, and tax data: Stop downloading CSVs. Link My Books auto-imports accurate figures by channel, mapped and categorized by region.

✅ COGS tracking with full duty integration: Add tariffs into product cost structures. See your true margin in real time.

✅ Accurate tax mapping for VAT, OSS, GST, and U.S. sales tax: Whether it's an FBA shipment to Germany or a Shopify order to California, LMB applies the correct rules.

✅ Reconciles bank payouts in one click: Breaks payouts into categorized entries that perfectly match your bank feed. Close the books faster.

✅ Industry benchmarking:  Know how your performance stacks up, based on real seller data.

No more spreadsheets. No more guesswork. Just clean, accurate books built for cross-border sellers.

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Further Best Practices for Sellers During Tariff Uncertainty

Here are some other things you can do to help you weather the changes. 

Optimize Your Supply Chain Geography

Reduce exposure by sourcing from tariff-neutral countries like Vietnam, Turkey, or Mexico. Diversify away from China where possible.

Build Tariffs Into Your COGS Model

Factor all duties into product-level cost. Automate this with Link My Books’ COGS mapping to get real margin clarity.

Automate Reconciliation and Tax Compliance

Use tools that automatically tag, categorize, and sync transactions to your accounting software, saving time and reducing error.

Forecast Profitability With Tariff Scenarios

Use historical data to simulate different landed cost models. Adjust SKUs and pricing accordingly before committing to large shipments.

FAQ on the Tariffs for E-commerce Sellers

How should we think about bulk imports with tariffs?

Bulk imports can reduce per-unit shipping costs, but also increase cash risk when duties are high. Factor in all landed costs before committing. Use forecasting tools to simulate impact.

How can I manage multi-ecom channel transactions in one place?

Use Link My Books. It pulls data from Amazon, eBay, Shopify, Etsy, and more, into a single, reconciled view synced with your accounting software.

How will e-commerce brands be affected?

Brands with global supply chains will feel cost pressure first. Expect thinner margins, delayed restocks, and pricing volatility, unless you automate and adapt.

What pricing strategies should I adopt now?

• Recalculate pricing with tariffs included
• Test demand elasticity via split testing
• Bundle high-margin items with tariff-heavy SKUs
• Consider zone-based pricing per geography

What Does the Future Hold for E-commerce Sellers?

Global e-commerce is entering a more protectionist era. Tariffs, customs regulations, and tax enforcement are tightening, not loosening.

The winners will be sellers who:

• Automate intelligently
• Shift sourcing strategically
• Know their numbers, margin by margin

Link My Books automates your entire e-commerce accounting workflow:

• Syncs sales, fees, taxes, and refunds from Amazon, Shopify, eBay, Etsy, and more
• Reconciles payouts into Xero or QuickBooks in one click
• Tracks real COGS, including tariffs, for accurate, tax-ready reporting
• Flags margin leaks so you can fix them before they hurt cash flow

No more downloads. No more guesswork. Just clean, compliant books, on autopilot.

👉 Start your free trial now!

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