What Are The New U.S. Tariffs (Effective March 4, 2025)
On March 4, 2025, the United States implemented new tariffs on it's largest three trade partners: China, Mexico and Canada.
This fundamental shift in trade policy, initially announced on February 1st and due to begin on February 4th, 2025, was later postponed by 30 days. Now the changes have been implemented by President Trump by Executive Order, effective from March 4.
If your eCommerce business imports items into the U.S., read on as we explore the changes that could reshape your manufacturing, sourcing and shipping strategies for 2025 and beyond.
Tariffs on Canada & Mexico (25%):
Imports from Canada and Mexico will now incur 25% tariffs, charged as duties, ending decades of duty-free trade under NAFTA/USMCA.
Tariffs on Chinese Products (10%):‍
All goods sourced and imported from China now carry an extra 10% tariff, equal to 20% (or higher depending on the exact retail category), regardless of freight route or shipment origin.
Impending Removal of $800 Duty Free Exemption:‍
The popular low-value "de minimis" exemption is still in place for Canada, Mexico, China and rest of world—however experts warn this grace period is only temporary (rumored to be 60 days)—until the U.S. Department of Commerce confirms that adequate systems are ready for tariff collection. Watch this space.
Brace for Retaliatory Tariffs:‍
Retaliatory measures are evolving at the time of writing, and further changes may occur in the coming days, with Canada and China already confirming counter tariffs of 25% and 15% respectively. Mexico is yet to confirm any change. Once again, stay tuned for further updates by signing up to the Easyship newsletter below.
How U.S. Tariffs Affect Your eCommerce Business
Depending on where your business is located, and where you manufacture or source your goods, the new tariffs on U.S. imports can have a significant impact on your bottom line.
This can be further amplified by the level of market competition and overall price sensitivity of your U.S. customers. How willing are your customers to pay an extra 25% tomorrow? This is a question all businesses will need to ask and act upon in the coming days and weeks.
To simplify exactly what is changing for your business, and what you can do next, we've split the following details by business location. For ease of understanding, we have kept this brief, but please note that product origin also matters (for example, Chinese-sourced items will still lead to tariff obligations even if you're located in the United States).
If you'd like to explore more ways to effectively navigate tariff changes, or better manage your international shipping, taxes and duties, chat to our global shipping experts today.
For U.S. Businesses selling inside the United States, new Tariffs mean:
- Higher costs on imports from China, Canada, and Mexico (your input expenses are about to go up 10–25% which will place added pressure on margins)
- Heighted border scrutiny with stricter import paperwork and customs clearance requirements is likely (ensure you make accurate declarations to avoid delays and penalties)
- You may need to diversify your supplier or manufacturer mix to (a) source items domestically or (b) move outside of the currently targeted origin countries (to minimize tariff exposure and reduce your costs of goods sold)
- Try using multi-carrier shipping software like Easyship to compare hundreds of carrier services and reduce domestic shipping costs (save up to 91% off with pre-negotiated discounted rates on USPS, UPS, FedEx and more)
Tariffs On Imports from Canada
For Canadian Businesses shipping to the United States, new Tariffs mean:
- New 25% tariffs on exports to the U.S. that will make your products more expensive for buyers (potentially decreasing your margins, sales volume, or overall demand)
- Impending end to the $800 duty-free de minimis exception for low-value shipments into the U.S. (meaning that every item, irrespective of value, will likely incur duties)
- Stronger competition from local U.S. sellers offering tariff-free alternatives (expect U.S. businesses to double-down on "Made in USA" marketing messages)
- Increased customs clearance and administrative burden on international shipments into the U.S. (you'll need clarity on product origin, HS codes and commercial invoice values, so it might be time to consider cross-border shipping tools like Easyship)
- Industry shift to U.S. based 3PL and warehouse providers to simplify import requirements, deliver faster shipping, and reduce international shipment costs (talk to Easyship 3PL today and save up to 40% on USA-based fulfillment services)
Tariffs On Imports from Mexico
For Mexican Businesses shipping to the United States, new Tariffs mean:
- A new 25% tariff on exports into the U.S. will raise your product prices relative to local brands (this could cut overall demand, reduce sales or compress your margin)
- Expect tougher competition to come from local U.S. sellers marketing tariff-free options (it's likely U.S. businesses will offset import costs by focusing on "Made in USA" advertisements as prices rise)
- Admin and customs clearance requirements for international shipments will only go up (likely to lead to import delays as inspection volumes spike, upsetting time-sensitive customers and highlighting the need for effective tracking and import tools like Easyship)
- U.S. based 3PLs and warehouse providers can help you simplify import paperwork, speed up package delivery, and cut international logistics costs (explore how Easyship's 3PL centers can help you in Los Angeles, Chicago and New Jersey, USA)
- The Section 321 duty-free exception for low-value shipments under $800 to the U.S. is likely to end soon (meaning that every item, no matter its value, will likely face the additional duties)
Tariffs On Imports from China
For Chinese Businesses shipping to the United States, new Tariffs mean:
- An extra 10% tariff, on top of existing duties of 10%, leading to a 20% price hike on 2024 will result in your products being less attractive (this could result in reduced demand and affect profitability)
- Increased expectations around transparency at checkout as buyers start to be hit by unexpected customs fees or import delays (potential rise of Delivery Duty Paid (DDP) shipments where duties are pre-paid by you as the seller on platforms like Easyship)
- Administrative burden on Chinese importers shipping internationally into the U.S. will further increase, even from traditionally favored routes like Hong Kong as duties are based on product not shipment origin (you'll need clear chain of custody, product origin and value declarations to avoid delays)
- Establishment of new U.S. based warehouses and eCommerce fulfillment centers will help you accelerate customs clearance, last-mile package delivery and reduce individual parcel shipping costs (try Easyship's 3PL to optimize your shipping from West Coast to East Coast)
- Tick tock, there's a final opportunity to send inventory into the U.S. while the Section 321 "de minimis" remains in place, as once it is removed duties will apply to shipments of all values (this is an theoretical strategy and of course is subject to change in line with the latest policy updates)
How To Calculate Tariffs, Taxes & Duties
No matter if you're shipping from Canada, China, Mexico or anywhere else in the world, Easyship gives you instant access to the exact costs involved with country-specific imports.
Simply visit our free Tax & Duty Calculator, enter your Shipment Origin (note: please be mindful that this is different to your product origin), Shipment Destination, Item Selling Price and Product Category to get a simple overview of the applicable taxes and duties payable.
Navigating International Shipping, Taxes & Duties in 2025
Despite the complexities of international trade, logistics optimization, and fast changing policy landscape, there are several opportunities for brands to simplify and save on shipping.
- Multi-Carrier Shipping Software & Rate Shopping: Utilize platforms like Easyship to compare rates from over 550 courier services and always find the lowest shipping prices. This is important when managing profitability with increased tariff costs and additional customs procedures, as every dollar saved on shipping goes direct to your bottom line.
- Automated HS Code Classification: Ensure that all goods imported are correctly classified to avoid misdeclaration penalties and unnecessary added costs. Once again, this can be easily managed by cross-border shipping tools like Easyship with in-built HS code lookup.
- Boost Conversions with Tax & Duties at Checkout: Transparency is increasingly important for modern consumers, never more so than when they start to be surprised by customs duties for items that have always been duty-free, which is why calculating the exact import taxes and duties payable for an online purchase and displaying this upfront at checkout increases trust and conversions.
- Third-Party Logistics (3PL) Services: As the complexity of managing international shipping, taxes and duties increases due to changing U.S. import policies, it becomes increasingly important to look at USA-based eCommerce fulfillment to manage costs, reduce administration and increase domestic delivery speeds
- Insurance & Risk Mitigation: With the potential for customs delays due to a sharp increase in inspection and processing volumes, the liklihood for lost and damaged parcels increases, leading to frustrated customers or unforeseen costs. By taking our shipping insurance on higher-value items, you can have complete peace of mind and resolve issues faster.
Ready to simplify and save on shipping?
Easyship is here to help.
Easyship was built to simplify shipping for eCommerce sellers of every size. If you’re looking for ways to save on shipping costs, compare rates, automate fulfillment, or grow internationally—our free shipping tools and smart dashboard can save you hours daily.
Our most popular App features:
- Discounted Shipping Rates: Get instant access to the largest selection of pre-negotiated volume discounts on shipping labels (up to 91% off retail rates).
- Multi-Carrier Comparison: Effortlessly compare 550+ global courier services to find the best option with our intelligent courier selection algorithm.
- Simple Set-Up & Integration: Connect your store and sales channels to Easyship in minutes to automatically sync orders and manage all shipments in one dashboard.
- Instant Rates At Checkout: Increase conversions by showcasing the cheapest, fastest and best value shipping rates live at checkout.
- Automatic Tax & Duties: Calculate, pre-pay, or pass on all tax and duty obligations for international orders, including generating all relevant customs paperwork.
- Shipping Automation Rules: Streamline shipping workflows, bulk print labels and reduce manual pick and pack errors with simple automation rules.
- Branded Tracking & Returns: Deliver a superior customer experience from checkout to delivery with branded tracking updates, delivery status, and pre-paid return labels.
- Shipping Insurance: Protect your brand and reputation from parcel loss or damage with affordable insurance options for domestic and international shipments.
More free shipping tools:
- Shipping Rate Calculator: Compare and calculate the cheapest way to ship anything to anywhere with our shipping cost calculator for international and domestic.
- Tax & Duties Calculator: Create an estimate of your customs duties and import taxes for every country and retail category.
- Country Import Rules: Understand the individual import rules, requirements, and restrictions for every country with our helpful guides.
- HS Code Lookup Tool: Search for the correct HS/HTS Code for international orders with our universal HS Code Lookup Tool.
- Shipping Policy Generator: A clear and enticing shipping policy is a sales tool for stores, setting clear expectations and building trust with prospective customers.
Join our community of eCommerce sellers and get started with Easyship for free today.
New U.S. Tariff FAQs
When did the new tariffs go into effect?
‍The 10% tariff on Chinese imports began on February 4, 2025, while the 25% tariffs on Canadian and Mexican imports were temporarily suspended until March 4, 2025.
How will these tariffs affect my eCommerce store?
‍Trump’s tariffs on imported goods raise costs by 10–25%, squeezing margins and forcing businesses to either absorb these additional costs or pass them on to consumers.
Are consumers really going to pay more?
‍Yes. Analysts forecast that due to these tariffs—and the increased tariff costs—prices for many goods will rise by 10–20%, which may lead consumers to shift their demand toward domestic production.‍
Can I mitigate tariff impacts by localizing inventory? ‍
Absolutely. Establishing U.S.-based fulfillment centers help reduce customs delays and may ultimately aid in re-shoring American jobs and supporting domestic industries.
What strategies should global sellers adopt?
‍Global sellers are increasingly warehousing products in the U.S. to avoid repeated tariff charges. Some are shifting production from China to untariffed countries, while others are considering establishing a U.S. presence to lessen the impact of these new tariffs.
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IMPORTANT: The information provided in this blog is for educational purposes only and does not constitute legal, tax, or financial advice. Laws differ by jurisdiction and change regularly. You should not rely on this content as your sole source of information. If you have specific concerns, please consult a qualified professional.