US trade policy has seen some remarkable and dramatic changes in 2025. The greatest among them are sweeping tariff policies that directly impact how eCommerce businesses and crowdfunding campaigns operate.

Whether you’re running a Shopify store, launching a Kickstarter campaign, or managing an Amazon FBA business, these changes affect your bottom line. And they do so in ways that require immediate attention and your ability to strategically adapt.

It all started with a universal 10% baseline tariff was implemented on most imports in April 2025.

China currently faces an effective rate around 40% after negotiations and suspensions.

And the $800 de minimis exemption that allowed small packages to enter duty-free? It ended August 29, 2025.

For businesses that have built their operations on affordable overseas manufacturing, this is a massive and fundamental shift. And it’s one that requires an immediate reassessment of sourcing, pricing, and fulfillment strategies.

In this post, we’ll go over some common questions to give you context and answers you need to make better decisions, starting with the most high-level question first.

What are tariffs and how do they impact businesses?

Tariffs are taxes on imported goods, collected when products cross international borders into the United States. When your shipment arrives at a US port, customs officials calculate what you owe based on your commercial invoice.

This bill must be paid before goods are released—and critically, the importer (typically the US business) pays it, not the overseas manufacturer.

Consider a practical example: You’re importing smartphone cases from Vietnam valued at $10,000. With the current reciprocal tariff structure, Vietnam faces varying rates depending on the product category and recent negotiations. Your actual tariff bill depends on the specific Harmonized Tariff Schedule (HTS) code for your products.

The federal government uses tariffs for three primary purposes:

  • Protecting domestic industries by making foreign goods more expensive
  • Generating federal revenue (tariffs collected $77 billion in fiscal year 2024 before being broadly expanded in 2025)
  • Creating leverage in trade negotiations

For importing businesses, however, tariffs represent an additional cost that either reduces margins or gets passed to consumers through higher prices.

Of recent tariff-related news, perhaps the most disruptive has been the removal of the de minimis exemption, explained below.

What was the de minimis exemption, and what does its removal mean for businesses?

The de minimis exemption previously allowed packages valued under $800 to enter the US duty-free. This provision enabled business models for companies like Shein and Temu, and helped thousands of small sellers maintain manageable costs. That exemption is now history.

On May 2, 2025, China and Hong Kong lost de minimis privileges. Every package from these regions now faces duties, regardless of value.

Then on August 29, 2025, de minimis ended globally. Almost all commercial shipments under $800 now incur duties.

Standard duty rates apply to regular shipments. For postal packages, importers face either the applicable tariff rate for their country or flat fees ranging from $80 to $200 per item, depending on the effective rate.

The scale of this change becomes clear in the numbers. De minimis shipments grew from 134 million in 2015 to over 1.36 billion in 2024. What the government viewed as a loophole, businesses relied upon as essential infrastructure.

Small sellers face particularly acute challenges. Etsy vendors report that small-value shipments now trigger substantial flat fees through USPS. Many have shifted to bundling products and shipping via private carriers like UPS, which calculate duties on actual declared value rather than imposing flat fees.

How do current tariffs compare to historical norms?

When it comes to tariffs, the year 2025 is, by a mile, the most important one in modern history. The last time tariffs were such a prominent part of US trade policy was in 1930 as part of the Smoot-Hawley Tariff Act.

Before 2025

From 2018 through 2024, the US primarily employed targeted tariffs, mostly directed at China. Section 301 tariffs ranged from 7.5% to 25% on specific product categories. Businesses could often plan around these by switching suppliers or absorbing costs on high-margin items.

The USMCA (formerly NAFTA) maintained mostly duty-free trade with Canada and Mexico until very recently. So in that regard, the North American continent had free trade for about 30 years.

Meanwhile, the de minimis threshold was $800 from 2015 to 2025, which kept small-batch importing viable for many businesses. Even before 2015, the de minimis threshold was $200, and the tariffs applied after crossing that threshold were lower.

2025 & Beyond

The April 2, 2025 announcement, dubbed “Liberation Day,” fundamentally restructured US trade policy in the following ways:

  • Universal baseline tariff: 10% on most imports
  • Reciprocal tariffs: Intended to match rates that other countries charge the US
  • China-specific measures: Complex negotiations resulting in suspended rates, currently effective at approximately 40%
  • De minimis elimination: First for China in May, then globally in August

The implementation speed caught businesses unprepared. The China de minimis change went from announcement to enforcement in under 30 days.

Meanwhile, as of the time of writing, many postal services worldwide have suspended US shipments until they have a chance to update their systems for compliance.

Current effective tariff rates vary significantly. Most notably, tariff rates are, at time of writing, set to the following:

Bear in mind that these rates continue to fluctuate based on ongoing negotiations and policy adjustments.

How do tariffs affect eCommerce stores?

Tariffs are making imported goods more expensive, which means eCommerce store owners have two options: accept lower profit margins or pass the cost onto consumers.

Let’s examine concrete numbers using current rates. You sell yoga mats sourced from China at $15 per unit with a retail price of $45.

Previous cost structure:

  • Product cost: $15
  • Shipping: $5
  • Gross margin: $25 (56%)

Current structure with 40% effective tariff:

  • Product cost: $15
  • Tariff (40% of $15): $6
  • Shipping: $5
  • Gross margin: $19 (42%)

While the example above shows a gross margin which is still viable, it’s a big change nonetheless. Not every product is going to continue to be viable without price increases or a change of supplier.

And on that note, store owners have a handful of options on dealing with these additional expenses:

  1. Price Adjustments: Pass the increased cost onto consumers and potentially risk lost sales.
  2. Supplier Diversification: Shift manufacturing from high-tariff countries like China to comparatively low-tariff countries like Vietnam, Thailand, and Mexico. This sometimes can offset costs, but it’s important to calculate the real effect on total landed costs all the same, as manufacturing internationally, but outside of China, is often more expensive than manufacturing in China—even with lower tariffs.
  3. Supplier Negotiation: Some manufacturers are absorbing partial tariff costs to retain customers to keep their businesses afloat.
  4. Domestic Production: Sometimes, tariffs are enough to make even higher-cost domestic manufacturing attractive for US brands, so some are switching when they can.
  5. Product Mix Optimization: Some brands are switching to higher-margin items that can better absorb tariff impacts.

In truth, many brands are doing a combination of these things in order to mitigate tariff costs.

It’s also worth noting that stores are running into additional supply chain costs that go beyond just tariffs. Among them are:

  • Customs broker fees (typically $100-300 per shipment)
  • Extended storage costs during customs clearance
  • Cash flow impacts from upfront duty payments
  • Increased accounting complexity for landed cost calculations
  • Potential delays affecting inventory planning

How are tariffs affecting crowdfunding (Kickstarter, Indiegogo, Gamefound, etc.)?

Tariff issues are especially tricky with crowdfunding since there is a long gap between funding and delivery of product.

For one, most campaigns lock pricing months before shipping begins. When tariffs change after funds are collected and production initiated, creators face unexpected costs that can eliminate margins entirely. Case in point, popular board game publisher, Stonemaier Games, reported facing nearly $1.5 million in unexpected tariff costs on games already in production. Their margins shifted from healthy to negative due to tariff changes.

In response, creators are employing the following tactics to keep their margins intact:

  1. Using Tariff Management Tools: Kickstarter introduced a Tariff Manager tool in April 2025. It allows creators to add surcharges to cover import costs during the pledge manager phase. While not ideal, it provides a mechanism for cost recovery.
  2. Adjusting Shipping Separately: Instead of including shipping in pledge levels, many creators now charge it later through the pledge manager. This provides flexibility to adjust based on actual costs at fulfillment time.
  3. Maintaining Transparency: Creators finding success are those explaining the situation honestly to backers. Most backers understand that global trade policy changes are outside a creator’s control.
  4. Building Larger Buffers: New campaigns are adding 15-30% padding to funding goals to account for tariff uncertainty and potential changes during the campaign-to-fulfillment timeline.

It’s also worth remembering that not all backers are in the US. Typical Kickstarter campaigns receive 40-60% of funding from international backers who are already accustomed to paying VAT and customs fees.

How can I prepare my business for tariffs?

Though the changes in US trade policy are sweeping in scope, there are still a lot of things that you can personally do to prep your business for tariffs. We’ve listed five tips below:

1. Calculate your true landed costs.

Review your most recent import invoice and calculate:

  • Base product cost
  • Applicable tariff rate for your country and product category
  • Freight and logistics expenses
  • Customs broker fees
  • Storage and handling charges

This total represents your actual landed cost. If current pricing doesn’t support profitability with these costs, adjustments are necessary.

2. Verify your HTS codes.

The Harmonized Tariff Schedule code determines your exact tariff rate. Incorrect classification can result in wrong rates and potential penalties.

Consider hiring a customs broker for a consultation to ensure proper classification. The investment typically pays for itself through accurate duty calculation.

3. Optimize fulfillment strategy.

For businesses importing to US warehouses:

  • Consolidate shipments to spread fixed costs across more units
  • Consider fulfillment centers near ports of entry to minimize inland transportation
  • Establish fulfillment operations in other countries for non-US customers

You’d be surprised how much you can save by carefully manage where you store items and ship them from.

4. Diversify supply chains.

It’s not a good idea to depend too much on one supplier for key products. Even if you want to keep working with your primary supplier, consider backups in other countries.

That way, if tariffs change quickly and your landed cost match changes, you can easily switch to your backup supplier.

5. Communicate proactively.

Whether selling on Shopify or Kickstarter, inform customers about potential impacts.

They’ll discover changes when prices adjust or shipments delay. Proactive communication maintains trust and manages expectations.

Moving Forward

There’s no denying that the current tariff-heavy environment has created some new challenges for eCommerce and crowdfunding businesses.

The companies succeeding are those that acknowledge the new reality, carefully analyze their costs, and make strategic adjustments.

If you’ve read this article and you still feel like you need help, that’s OK. At Fulfillrite, we’ve been helping eCommerce and crowdfunding brands ship quickly and cost-efficiently since 2010.

While we can’t make tariffs disappear, we can help optimize your fulfillment strategy to minimize their impact through our services of US-based shipping,  warehousing, and order processing. So if you’re looking for ways to adapt your fulfillment operations to this new trade environment, reach out to us today for a free quote.

Frequently Asked Questions

Are these tariffs permanent?

They might be. Trade policy can change with administrations or new trade agreements. The situation remains fluid.

Do tariffs apply to product samples?

Yes, unless marked as having no commercial value. Even then, customs officials may assess duties. Plan accordingly when requesting samples.

Can I mark packages as gifts to avoid tariffs?

It’s not a good idea to do that. While gifts under $100 are exempt, false declarations are illegal and can result in import privileges being revoked. The risks far outweigh any potential savings.

What if I’m dropshipping from China?

Each individual package faces duties with no de minimis exemption. Consider bulk importing to a US warehouse for more cost-effective fulfillment.

How do I determine my exact tariff rate?

Check the Harmonized Tariff Schedule using your product’s HS code. Add any additional tariffs (reciprocal, Section 301, etc.) that apply to your country of origin. Rates change frequently, so verify before each shipment.

Should I delay my Kickstarter launch?

Delaying may not help, as tariff policies continue evolving. Build flexibility into your fulfillment timeline and maintain transparent communication with backers about potential adjustments.

What about products already in transit?

Review your incoterms to determine responsibility. If you’re the importer of record, duties are owed upon arrival. Some shipments may qualify for transitional provisions depending on timing.

Can fulfillment centers help manage tariff impacts?

While fulfillment centers cannot eliminate tariffs, they can help optimize logistics through consolidated shipping, strategic inventory placement, and proper documentation. Even warehousing your goods in the US alone can have a big impact, since you would only pay tariffs on the wholesale value of the goods rather than the retail value (as you would if you shipped individual packages to US recipients from outside the US).