How Trump's 2025 tariffs impact e-commerce: What brands need to know and next steps to stay ahead
Passport explains how the Trump administration's new U.S. tariffs are shaking up e-commerce and affecting brands, and suggests strategic moves you can make to keep up in a shifting market.
How Trump's 2025 tariffs impact e-commerce: What brands need to know and next steps to stay ahead
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.
Key Trade Policy Updates from the April 2 Announcement
- A 10% blanket tariff applies to all U.S. imports, except Canada, Mexico, and China as of April 5.
- Country-specific rates are frozen for 90 days. As of April 10, the 10% tariff also applies to countries previously subject to reciprocal tariffs.
- China and Hong Kong are the exception: a 125% reciprocal tariff applies to imports from these markets as of April 10, in addition to the 20% tariff imposed in March for a total 145% tariff; this is in addition to other standard tariffs.
- Postal shipments from China and Hong Kong will be subject to a 120% tariff or $100Â per item starting May 2, depending on the valuation method selected by the carrier; the per-item amount increases to $150 on June 1.
- De minimis ends for shipments from China and Hong Kong on May 2. All goods, regardless of value, will require formal or informal entry.
- The U.S. still plans to eliminate de minimis benefits for all countries once systems are ready to support full enforcement.
Understanding Tariffs and De Minimis
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:
- Ad valorem tariffs are calculated as a percentage of the product's declared value—for example, a 10% tariff on a $1,000 item would result in $100 in duties.
 - Specific tariffs are a fixed amount charged per unit, no matter what the item is worth—for example, $2 per item, whether it costs $10 or $100.
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.
What's Changing in 2025: De Minimis and Tariff Updates
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:
- May 2: De minimis ends for all goods from China and Hong Kong—shipments of any value will require formal customs entry and duties. Postal shipments will be subject to a 120% tariff or $100 per item, depending on the valuation method selected by the carrier.
- June 1: The flat-rate postal tariff increases to $150 per item (up from the previous $100Â rate)
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.
New Tariff Rules Taking Effect
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.
- A 10% blanket tariff applies to all U.S. imports as of April 5, except Canada, Mexico, and China, which are handled separately.
- The 10% rate also applies to countries previously designated for reciprocal tariffs—the country-specific rates are frozen for 90 days as of April.
- Imports from China and Hong Kong are subject to a 125% tariff effective April 10, in addition to the 20% tariff imposed in March and any other standard tariffs that apply. Smartphones, computers, monitors, routers, and some electronics are exempt for now.
View the full U.S. Tariff Rates by Country list
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