Trump’s New China Tariffs: How eCommerce Merchants Will Be Affected

Feb 11

4 min read

The De Minimis Rule & Small Order Imports

How Will eCommerce Entrepreneurs Be Impacted?

Profit Margins Under Pressure

China’s Retaliation: More Uncertainty Ahead

Shipping Delays, Chargebacks & Rising Refund Rates

Adapting to the New Trade Landscape: Actionable Strategies for Merchants

Stay Ahead with Compaytence

The U.S.-China trade war is back in full swing, and eCommerce merchants are already feeling the effects. In a dramatic shift, Trump has reintroduced and expanded tariffs on Chinese goods, including an across-the-board 10% tariff on all Chinese imports, impacting an estimated $450 billion worth of products.

These new tariffs add to the existing Section 301 tariffs first implemented in 2018 and 2019, which targeted over $350 billion in Chinese goods, including electronics, machinery, furniture, toys, plastics, and more.

The De Minimis Rule & Small Order Imports

Beyond the new tariffs, Trump has also attempted to eliminate the de minimis rule, which previously allowed shipments under $800 to enter the U.S. tariff-free. This exemption has been a lifeline for fast-fashion giants like Temu, Shein, and Amazon, as well as thousands of small eCommerce sellers sourcing low-cost products from China.

However, after facing logistical challenges and backlash from retailers and shipping companies, Trump temporarily paused the rule change. But make no mistake—de minimis removal is still on the table, and once U.S. Customs and Border Protection (CBP) has the systems in place to process millions of additional low-value shipments, this loophole is likely to close for good.

How Will eCommerce Entrepreneurs Be Impacted?

The new tariffs and potential de minimis removal will force eCommerce merchants to reevaluate their pricing, supply chains, and fulfillment strategies. If the 10% tariff remains in place and de minimis is removed, many sellers will face rising costs, thinner profit margins, and possible shipping disruptions.

Profit Margins Under Pressure

Most eCommerce sellers operate on tight margins, and an extra 10% tariff can be the difference between profitability and loss. Large retailers with strong supplier relationships and bulk purchasing power may be able to absorb some of the costs, but smaller businesses—especially dropshippers and private-label sellers—will likely have to pass these costs onto consumers.

China’s Retaliation: More Uncertainty Ahead

Adding to the uncertainty, China has responded with its own tariffs on U.S. goods, including:

15% tariffs on U.S. coal and liquefied natural gas
10% tariffs on crude oil, farm machinery, and automobiles
New export controls on critical minerals
An antimonopoly investigation into Google

It remains to be seen how the Trump administration will counter these measures, but tensions are escalating, and further tariff hikes could be on the horizon.

Shipping Delays, Chargebacks & Rising Refund Rates

One of the biggest risks for eCommerce sellers is shipping disruptions and customs delays. With the CBP increasing scrutiny on imports from China, merchants should expect:

Longer processing times at customs
Potential package rejections due to improper documentation
Higher likelihood of packages being held for tariff payments

These factors could lead to frustrated customers, late deliveries, and an uptick in chargebacks and refunds. If merchants aren’t proactive in setting clear expectations and updating shipping policies, they could see a sharp increase in disputes—which can impact payment processing accounts and merchant credibility.

Adapting to the New Trade Landscape: Actionable Strategies for Merchants

With so many changes happening in real time, staying ahead of the curve is critical. Here are key steps eCommerce merchants should take:

1. Ensure Accurate HS Code & Customs Compliance

Logistics companies like YunExpress emphasize the importance of correctly declaring HS codes, product values, and shipment details. If sellers fail to provide this information, customs delays and additional fees could follow.

2. Consider Alternative Suppliers & Fulfillment Options

Explore new sourcing opportunities in Vietnam, India, Mexico, or even domestic U.S. manufacturers.
If de minimis is removed, fulfillment centers in non-China regions (such as Hong Kong or Taiwan) may help optimize shipping strategies.
Negotiate better pricing with Chinese suppliers to offset tariff-related costs.

3. Reevaluate Pricing Strategy

Factor tariffs into product pricing while staying competitive.
Offer bundle deals or premium product versions to absorb extra costs.
Clearly communicate price changes with customers to maintain transparency.

4. Improve Shipping & Customer Communication

Set accurate delivery expectations in case of delays.
Use tracking software to monitor shipments and update customers proactively.
Offer localized fulfillment solutions where possible to reduce wait times.

5. Manage Chargebacks & Customer Disputes Effectively

Expect a rise in refund requests due to potential delivery issues.
Consider fraud prevention and chargeback management tools to protect your business.
Have a clear refund and replacement policy to handle disputes efficiently.

Stay Ahead with Compaytence

With tariffs fluctuating, customs rules evolving, and uncertainty at an all-time high, eCommerce merchants must stay informed and adaptable. At Compaytence, we specialize in helping businesses navigate these challenges by providing:

✅ Chargeback prevention & management

✅ Payment processing solutions for high-risk merchants

✅ Logistics & customs compliance support

✅ Expert strategies for handling international trade changes

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