New Trump Tariffs Are Coming: What Ecommerce Brands Need to Know About the Latest Trade Policy Changes

February 4, 2025 
|  kate

As of February 4, 2025, the U.S. government has enacted (and then paused some) new tariffs on imports from Canada, Mexico, and China, citing concerns over illegal immigration and trade imbalances. These changes have already started to trigger talks of retaliatory tariffs from Canada and Mexico in the coming weeks.

For ecommerce brands selling internationally, these policy shifts could have major financial and operational consequences — impacting shipping costs, supply chains, and overall market strategies.

Here’s what we know so far:

  • U.S. Tariffs: 25% tariff on imports of goods from Canada, with a 10% tariff on certain Chinese goods.
  • Canada’s Response: 25% tariffs on certain U.S. goods, originally set to begin on February 4, 2025, have been postponed for 30 days.
  • Mexico’s Response: Tariffs are currently on hold for 30 days, but implementation is likely.
  • De Minimis Changes: The $800 U.S. de minimis rule remains in place for non-Canada, Mexico, or China-origin goods. However, Canada’s $150 CAD de minimis threshold is under review. Early indications are that any good made anywhere traveling from Canada will have the de minimis waived.

    What’s still unclear?

    • Will the U.S. impose additional tariffs on Canada and Mexico? The U.S. has threatened further trade penalties if retaliatory tariffs are enforced.
    • Will Canada adjust its de minimis threshold? If lowered, this could mean that more low-value shipments would be subject to import duties and taxes in Canada.
    • What will Mexico’s final tariff policy look like? While Mexico has delayed its response, new duties could be announced soon.

    Understanding Tariffs and De Minimis

    For ecommerce brands navigating these trade shifts, understanding tariffs and de minimis thresholds is crucial.

    What are tariffs?

    Tariffs are taxes imposed on imported or exported goods by a government to regulate trade, protect domestic industries, or respond to foreign policies. They increase the cost of imported goods, making them less competitive in the market.

    Example: If a U.S. brand imports goods from China that were previously taxed at 39%, the new tariffs could raise the rate to 49%, significantly increasing costs.

    What is de minimis?

    De Minimis refers to the threshold value below which imports can enter a country duty-free or with reduced customs processing.

    • U.S. de minimis: $800 USD (meaning shipments valued under this amount generally enter duty-free).
    • Canada’s de minimis: $150 CAD for U.S.-shipped goods (currently under review due to tariff changes).

    For ecommerce brands, lower de minimis thresholds mean higher costs on lower-value shipments, which could impact pricing and profit margins.

    How Will Trump Tariffs Impact Ecommerce Brands?

    If your business sources products internationally, fulfills orders cross-border, or relies on cost-effective shipping, these tariffs may significantly impact operations. 

    Here’s how different business models could be affected:

    1. Brands Selling China-Made Products to the U.S. (Direct from China or via Canada/Mexico)

    Impact:

    • These brands face 10% to 49% tariffs, depending on the product category.
    • Higher import and customs clearance costs may force price increases or margin reductions.

    What to Consider:
    ✔ Shift fulfillment to the U.S. to reduce tariffs on direct shipments from China.
    ✔ Monitor trade policies for potential additional duties on specific product categories.

    2. Brands Selling China-Made Products but Fulfilling from the U.S.

    Impact:

    • U.S. import costs rise due to higher China tariffs.
    • Selling cross-border to Canada/Mexico may trigger additional retaliatory tariffs.

    What to Consider:
    ✔ Evaluate Canada de minimis changes before making cross-border shipping decisions.
    ✔ Consider local in-country fulfillment in Canada to reduce duties (Passport can help with this).

    3. U.S.-Made Products Shipped to Canada & Mexico

    Impact:

    • Subject to Canada’s new 25% retaliatory tariff (postponed for 30 days as of February 3, 2025).
    • Mexico tariffs expected within the next 30 days if the U.S. imposes tariffs on goods with MX as the Country of Origin (COO).

    What to Consider:
    ✔ If your product’s retail value is over $100 USD, consider in-country fulfillment in Canada.
    ✔ Stay updated on de minimis changes to assess cost impact.

    4. Non-U.S./Canada/Mexico/China Products Shipped to the U.S. (E.g., from Vietnam)

    Impact:

    • These products remain duty-free under the $800 U.S. de minimis rule.

    What to Consider:
    ✔ Continue using efficient cross-border shipping while monitoring policy updates.

    How Passport Is Responding

    At Passport, we’re committed to helping ecommerce brands navigate these fast-changing trade policies with real-time insights and tailored solutions.

    1. We’re monitoring the situation closely, leveraging our global trade and compliance experts, as well as our worldwide network, to keep customers informed.

    2. Our platform is being updated (on February 4th) with new duty and tax rates to ensure compliance and avoid shipment disruptions.

    3. We’ve recently expanded our all-in-one internationalization solution, Passport Global, through our acquisition of Brand Access, helping brands navigate tariff challenges with localized fulfillment and strategic solutions.

    4. We provide in-country fulfillment services in Canada to help brands avoid high cross-border tariffs.

    5. Our CEO and Co-Founder, Alex Yancher, is actively sharing updates and insights on LinkedIn and Twitter/X to keep our network informed.

    6. We’ve launched a new website: TrumpTradeTracker.com — a go-to news aggregator to centralize updates on tariffs, global trade shifts, and ecommerce insights.

    7. Our weekly Service Alerts will continue to help keep Passport customers informed about the latest changes and potential disruptions.

    8. Additional video resources and content is coming soon to help assist 3PLs and brands navigate the changing landscape.

    Final Thoughts: What’s Next for Ecommerce Brands?

    The global trade landscape is shifting rapidly, and ecommerce brands must adapt quickly to stay competitive. With higher tariffs, potential de minimis changes, and retaliatory measures, businesses must:

    • Reassess supply chains and fulfillment strategies
    • Monitor de minimis policy shifts to avoid unexpected costs
    • Plan for price adjustments and explore duty-saving options
    • Leverage in-country fulfillment to reduce tariff exposure
    • Rely on Passport’s expertise and reliable service to help your brand reach its full global potential

    Need help navigating these changes? Passport is here to guide you through these evolving trade policies, ensuring compliance and minimizing disruptions to your global operations. Follow us on LinkedIn, monitor the news at TrumpTradeTracker.com, or schedule a meeting to discuss how we can assist your global business.

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