📦 How the New US Tariffs Impact Dropshipping Businesses
In April 2025, the United States introduced new tariff regulations that directly affect low-value shipments from China. For dropshippers targeting the US market, this might sound alarming—but the actual impact may be less severe than it appears.
🚚 Shipping Times Remain Stable
Despite the customs changes, shipping time has not significantly increased. Most packages are still delivered within 5–10 business days, and in many cases, even faster. The logistics chain remains efficient.
💰 The Real Cost Impact — With an Example
The key change is in how import duty is calculated for low-value packages. Under the revised rule, a package may be taxed either:
Based on ad valorem rate (value-based, e.g., 120%),
Or a flat fee ($75–$150) per shipment,
To optimize costs, most dropshippers will choose the ad valorem method.
US Customs allows declared values based on the FOB (Free on Board) price.
Let’s break it down with an example:
Component | Cost |
---|---|
Product selling price | $39.99 |
Supplier product cost | $4.00 |
Shipping cost | $6.00 |
Declared value | $4.00 (FOB) |
Duty (120% of $4) | $4.80 |
Total cost before: $4 + $6 = $10
Total cost now: $4 + $6 + $4.80 = $14.80
That’s a ~48% increase in backend cost. However, it’s still manageable for many product categories.
📦 Customs Clearance & Tax Rules Simplified
Due to the cancellation of T86 clearance (which previously enabled duty-free clearance under $800), shipments now require more traditional clearance methods such as:
T01, T11
Re-export (transshipment)
FOB, CIF customs terms
Don’t worry too much—your Chinese sourcing agent or logistics partner will typically handle these technical details.
📦 Strategic Response for Sellers
The new policy affects all importers, not just US Dropshipper businesses. Your competitors—whether they’re on Amazon, eBay, Etsy, or running brick-and-mortar stores—will also see higher costs. So the real questions are:
Can you adjust your retail price to absorb the additional cost and still remain profitable?
Are there lower-cost sourcing options in the US or other regions outside China?
If your margins allow and your brand stands out, this change could actually help reduce price competition by raising the barrier to entry.
📞 Want Help Navigating These Changes?
Need assistance understanding customs rules, choosing the right logistics method, or keeping your business profitable under new US import rules?
Contact us now — we’re here to help dropshippers stay competitive and compliant.
📅 Important Note (as of April 2025)
This article was written in April 2025, based on the latest publicly available information regarding US customs and tariff policies.
Please note that tariff rates and clearance methods are still evolving, and future costs may fluctuate depending on further announcements by the US government or the CBP (Customs and Border Protection). We strongly recommend staying updated through reliable sources or working with an experienced logistics partner to navigate these changes.