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USA Tariffs Impact on Dropshipping Business

Understand how recent U.S. customs changes impact your dropshipping logistics and what adjustments carriers are making.

What is happening?

On May 12, 2025, the President of the United States announced a 90-day pause on the new tariffs. However, existing U.S. tariffs on Chinese goods remain at 30%.

We’re constantly tracking these changes and adjusting our processes to make sure your business keeps running smoothly.

We know that tariffs can be confusing, so let’s clear it up: Tariffs depend on where the buyer is located, and since we don’t know that in advance, we can't include them in the product’s price on the product page. But no worries – here’s what you need to know.

Important Note

While these new tariff changes are still in the early stages, please keep in mind that the next 30-90 days will be crucial for understanding their full impact.

We expect to gather more insights into how each carrier will operate under this structure over the next 30-90 days.

We’ll continue to monitor the situation closely and keep you informed.

Sourcing Requests

We’ve made an important update to improve your experience when submitting sourcing requests after the new tariffs announcement:

  • The shipping costs are automatically calculated and included in the price you see.

  • There’s no need for you to do any manual calculations — what you see is what you pay in most cases.

  • This update also includes a new logistics and tax structure that ensures a smoother and more accurate sourcing process.

  • Keep in mind that logistics, delivery times, and shipping costs may vary by carrier. Prices are already factored into your sourcing request automatically.

Recommendations:

  1. Please review your shipment plans based on this new setup to avoid delays or unexpected changes in order processing and delivery.
  2. Increase the estimated shipping time to account for possible logistics adjustments.

    This helps manage your buyers’ expectations and prevents disputes or negative feedback due to delivery delays.

Manual Orders, Auto-order and Fulfilled by AutoDS (FBA)

Due to these new tariff regulations, we recommend that users increase their % fees by at least 30% for China-based suppliers to account for the higher costs caused by taxes and duties.  Please note that this applies only to regular orders and does not affect orders placed through sourcing requests, as those already have the updated costs applied.

In your Settings, select each China-based supplier and apply the updated fee. Please note that changes made in the Supplier Settings will only apply to new uploads. For existing products, refer to the second image below to update the fee percentage in bulk.

Fee Tariffs

Step-by-step to change Fees% in bulk for uploaded products

  1. Go to the Products page.

  2. Add a filter: Region > China.

  3. Select the products you want to update.

  4. Click Bulk Edit.

  5. Click + Add item to edit.

  6. Select Fees% and choose Change by.

  7. Enter the 30% fee.

  8. Apply the bulk action.

Add Filter China

In bulk

The Auto Order system will continue to work as usual, as long as the total cost (product price + shipping if included + taxes/tariffs) does not exceed your set max purchase price.

Max Price

If the total amount goes over your maximum purchase price, the order will fail and return the following error message:

“The order includes new U.S. tariffs, and the total price exceeds your maximum purchase price. You can still proceed by forcing the order—just resend it to Auto Order. Learn more about the tariffs.”

Please note that orders under automation (Auto-order or FBA) the tariffs are not visible or calculated on the product page. They are only applied at checkout when the order is actually placed, so you’ll see them on your Orders page only after the order has been submitted.

Orders Page Fee Tax

We strongly recommend reviewing and adjusting your pricing strategies to stay aligned with these changes and avoid disruptions in order processing.