It has been impossible to ignore the impact of tariffs on ecommerce in 2025. From earnings calls to retail leaders’ in-person talks at the White House, executives have been clear that new tariffs and changes to established trade agreements are creating challenges and making it difficult to plan for the future.
Across ecommerce and online retail, tariffs have hit Consumer Electronics and added to worries in Housewares & Home Furnishings. Meanwhile, the online retailers most reliant on international sales face an ever more complicated landscape for imported goods manufactured outside the U.S. and exports from the U.S. to countries implementing retaliatory tariffs.
On April 22, U.S. President Donald Trump told reporters that he expected to see a tariff on imports from China come down below 145%. Elsewhere, Treasury Secretary Scott Bessent reportedly told investors in a private meeting the same day that he anticipated “a de-escalation” of trade disputes in “the very near future.” Even so, many changes have already taken place for online retailers as tariffs have loomed heavily over the past few months.
Here are five key changes that have already been documented:
1. Cross-border ecommerce taking a hit from tariffs
Sales revenue from U.S. retailers to Canadian delivery addresses fell 6% year over year in Q1, according to a report from the payment security and fraud prevention company Signifyd. Cross-border commerce to Mexico suffered as well, with online retail sales from the U.S. to Mexican consumers down 31% year over year.
In the meantime, Signifyd saw domestic sales within those regions improving over the same period, showing that local consumers were turning away from cross-border purchases from U.S. retailers.
2. Ecommerce tech vendors rolling out new tools in response to tariffs
Even if revenue takes a hit, online retailers will still be reliant on tech, and merchants see some of their best ecommmerce tech investments in 2025 being made in supply management solutions. Some retailers will look for solutions to make their supply chains more efficient and cost effective. In other cases, tech may serve niche cases, such as Walmart’s use of Cropin for agriculture use cases.
Nevertheless, ecommerce technology providers’ fates are tied to those of their customers as they face new costs from tariffs. For instance, Bank of America Securities analysts flagged ecommerce software vendors such as Shopify, BigCommerce and Lightspeed Commerce could be particularly vulnerable. The more reliant their clients are on products sourced from China, for instance, the more likely they are to feel the impact from a tariff-related slowdown.
3. Retailers are already planning price increases
Both Shein and Temu announced tariff-related price increases set to go into effect on April 25. And they aren’t alone. Leaders at Williams-Sonoma and RH (formerly Restoration Hardware) said they anticipate upward price changes as well. Changes to U.S. de minimis rules have compounded challenges, as a loophole that until now has let shipments of up to $800 into the U.S. without import taxes is scheduled to close May 2.
4. Major carriers downgraded, adjusting policies
De minimis changes have impacted carriers as well. Both FedEx and UPS appeared in a cautionary statement from Christian Wetherbee, an analyst at Wells Fargo, Seeking Alpha reported. Wetherbee cited package volume risk and the impending end of de minimis exemptions, along with volume dropoffs already observed during the first quarter of 2025.
“Elevated Chinese tariffs and the elimination of the de minimis exemption is likely to weigh on U.S. volume and for UPS in particular may drive some network de-leveraging which could hurt margins,” Wetherbee said. “FedEx carries a bit more international air risk, although in the short term air may benefit from trade up to get ahead of tariff deadlines.”
At DHL, the carrier has gone as far as to suspend handling of all global shipments of more than $800 to U.S. customers as of April 5, noting that an expanded range of shipment values led to “a surge in formal customs clearances, which we are handling around the clock.”
5. Drop-shippers see lower sales, smaller margins
Tariffs and de minimis updates alike have made drop-shippers feel their pinch. These sellers avoid holding inventory and fulfilling orders by passing responsibilities on to suppliers. In doing so, they often rely on China-based suppliers for fulfillment.
“We’re not selling to the U.S. as much as we used to … 60% [of our products] used to be sold to the U.S. and now it’s gone down to about 20 to 30%,” said Kamil Sattar, who runs a consumer-facing drop-shipping business and recently spoke to CNBC. “We’re now slowing down on U.S. consumption, and we’re focusing on the European market.”
According to Sattar, problems extend past order expenses. They also include holdups on orders from China being stopped for inspection at the U.S. border. Prior to recent changes, these delays wouldn’t have taken place.
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