The global trade landscape is once again shifting—and if you sell into the U.S. or rely on international suppliers, it’s time to pay close attention. While some of the proposed reciprocal tariffs are currently paused, several key changes are still in motion and could affect your margins and fulfillment strategy.
In this guide, we’ll break down what’s happening with U.S. tariffs, how they may affect Canadian and global eCommerce sellers, and what you can do to stay competitive amid the uncertainty.
What Are Reciprocal Tariffs?
Reciprocal tariffs are import taxes designed to mirror the trade duties imposed on U.S. goods by other countries. The idea is simple: if a trading partner imposes high tariffs on American exports, the U.S. would respond with equal or greater duties.
While the policy was formally announced by President Donald Trump on April 2, 2025, many of the proposed tariffs are now on a temporary pause, giving sellers a narrow window to reassess and recalibrate their strategies.
What’s Changing in the U.S. Tariff Landscape?
Here’s a breakdown of key updates that remain active:
- Universal 10% Baseline Tariff: As of April 5, 2025, a 10% baseline tariff now applies to most imports into the U.S. However, this does not apply to Canada and Mexico.
- Reciprocal Tariffs Paused: The broader reciprocal tariff policy has been temporarily suspended for 90 days. Countries that have not imposed retaliatory tariffs on U.S. goods will not see new tariffs applied during this period.
- Tariff Hike on Chinese Goods: A 125% tariff now applies to Chinese-origin goods. This is a direct move to rebalance the trade relationship with China and is currently in full effect.
- End of De Minimis for China & Hong Kong: As of May 2, the $800 duty-free de minimis threshold no longer applies to shipments from China and Hong Kong. This means even small, low-value shipments are now subject to duties.
- Parcel Tariffs Escalating (Postal Shipments):
- From May 2 to May 31, postal shipments (e.g., USPS) from China or Hong Kong will face a $75 per item fee.
- Beginning June 1, that fee rises to $150 per item.
- Alternatively, shippers can opt to pay a 90% de minimis tariff based on the item’s value, if that proves more cost-effective.
- Note: If U.S. Customs determines a formal entry process is required, postal parcels may also be subject to standard duties, taxes, and fees.
What This Means for Canadian Sellers
Canadian eCommerce businesses have some breathing room—especially those whose products qualify under the USMCA agreement, which allows for preferential tariff treatment.
However, if your supply chain involves Chinese-made products and you’re shipping them to the U.S., you’re still affected by the steep 125% tariffs. Goods from China carry origin-based tariffs, even if shipped from Canada or other countries. This could significantly impact your margins unless you adapt your sourcing and logistics model.
How to Stay Ahead: 4 Strategic Moves for eCommerce Sellers
- Audit Your Supply Chain: Shift sourcing to countries with lower tariff exposure or with active free trade agreements.
- Evaluate DDU vs. DDP Shipping:
- DDP (Delivered Duty Paid): You handle all duties at checkout, providing a seamless customer experience.
- DDU (Delivered Duty Unpaid): The customer pays duties at delivery, which can reduce your upfront costs but may impact conversion. Choose based on your margin, delivery method, and customer base.
- Use Smart Tech: Use tools to calculate landed costs and get real-time alerts on trade policy changes. Staying informed helps you pivot quickly.
- Be Transparent with Pricing: If rising tariffs force you to increase prices, explain why. Customers value honesty, especially during global economic uncertainty.
How eShipper Can Help You Stay Profitable
Tariffs fluctuate, and staying agile is key.
At eShipper, we help eCommerce brands navigate these uncertain waters with smart, scalable solutions that respond to changing trade policies:
Our solutions include:
- Cross-Border Fulfillment from Canada: Send USMCA-compliant goods to U.S. customers without cross-border headaches.
Note: Goods sourced from China still carry origin-based tariffs—even when shipped from Canada.
- U.S. Domestic Fulfillment: Store your products stateside to bypass international shipping delays and tariff complications.
Note: Goods sourced from China still carry origin-based tariffs.
- Integrated Shipping Software: Optimize carrier selection, streamline customs paperwork, and make decisions based on the latest tariff rules.
- Customs & Compliance Guidance: Need help navigating changing regulations or qualifying for exemptions? We’ve got your back.
- Multi-Channel Support: Ship from Amazon, Shopify, or your DTC site—all under one roof.
Final Thoughts
While some tariffs are paused, others—like the 125% levy on Chinese goods—are fully in effect. The takeaway? This situation is still evolving, and sellers need to remain alert and adaptable.
At eShipper, we’re monitoring developments closely to help our customers stay competitive and compliant. From real-time customs insights to smarter fulfillment routes, we’re here to future-proof your business in a volatile trade environment.
Need help navigating reciprocal tariffs? Contact eShipper today to connect with a fulfillment expert.
