The 2025 United States tariff landscape has ushered in a new era of uncertainty for US-based brands. With sweeping policy changes that include a 10% baseline tariff on most imports, the end of the de minimis threshold for shipments from China and Hong Kong, and elevated tariffs on key manufacturing partners, brands that rely on global supply chains are facing unprecedented challenges.
While intended to strengthen domestic industries and rebalance global trade relationships, the ripple effects are already being felt by businesses large and small. For ecommerce brands that are witnessing the pressure or preparing for impact, we’ve collected a few key pain points and strategies to help you stay agile and pivot operations.
How Brands Are Being Impacted
These shifts are upending cost structures, inventory strategies, and pricing models across the industry. Even brands built for speed, efficiency, and affordability are being forced to quickly recalibrate in response to today’s rapidly changing landscape.
Rising Costs and Margin Pressure
For many US brands, the most immediate impact of the new tariffs is higher input costs. The added duties on imported goods, particularly from Southeast Asia, are forcing companies to reassess their COGS (Cost of Goods Sold). With tariffs now reaching as high as 125% for certain Chinese imports, many businesses are seeing a direct squeeze on their margins.
This has created a difficult decision for many brand leaders: absorb the added costs and risk eroding profits or raise prices and risk losing customer demand. Neither option is ideal, especially in a market where consumers remain highly price sensitive. Brands are working quickly to reassess pricing strategies and find cost offsets elsewhere in their operations.
Supply Chain Disruption and Operational Strain
Beyond the cost implications, the new tariffs are creating widespread operational friction. Increased customs scrutiny, new documentation requirements, and shifting shipping timelines are all contributing to delays and logistical headaches.
The end of the de minimis exemption for Chinese and Hong Kong imports (previously allowing shipments under $800 to enter duty-free) has had a particularly sharp impact on small to midsize ecommerce brands that relied on direct-to-consumer imports. Now, even low-value shipments require formal entry filings and are subject to new MPFs (Merchandise Processing Fees), adding both cost and administrative complexity.
Shifting Sourcing and Manufacturing
With the cost of importing from traditional hubs on the rise, many brands are looking to diversify their sourcing strategies. However, recent tariff hikes on countries like Vietnam, Cambodia, and Thailand have narrowed the list of viable alternatives, prompting some companies to explore nearshoring opportunities in Mexico or Central America.
Others are shifting toward domestic production for select SKUs, especially for high-margin or high-volume items where control and stability outweigh cost savings. Still, the transition to new sourcing regions is rarely seamless, and lead times, supplier vetting, and capacity constraints remain ongoing challenges.
Strategies to Push Against United States Tariffs
Despite these mounting challenges, brands are still expected to stay competitive and protect profitability; a task that’s easier said than done. That’s why we’re sharing insights into the strategies we’ve used to support our brand partners. Below are several proven approaches designed to help businesses navigate the financial impact of tariffs while building stronger, more resilient supply chains.
Supply Chain Diversification
One of the most effective ways to reduce the impact of tariffs is to diversify sourcing. Relying on a single country can put your entire supply chain at risk. US brands should consider shifting production or sourcing to countries with more favorable trade relationships, such as Vietnam, India, or Mexico. Establishing relationships with multiple suppliers across different regions can also create more flexibility and reduce exposure to future tariff fluctuations or geopolitical instability.
Product HTS Codes
Tariff rates are determined by the HTS (Harmonized Tariff Schedule), and in some cases, reclassifying a product under a different code can reduce or eliminate duty fees. Brands should work with trade compliance experts or customs brokers to ensure that their products are correctly classified. Even slight changes to a product’s material, packaging, or function can qualify it for a different classification with a lower duty rate, offering an opportunity for long-term savings.
Adjust Pricing
Passing tariff-related costs to consumers is sometimes unavoidable, but it should be done strategically. Rather than sudden price hikes, brands can consider gradual adjustments or use creative tactics like product bundling, tiered pricing, or offering limited-time promotions to maintain perceived value. Clear communication around pricing changes can also help customers understand the context and maintain brand trust.
Leverage Trade Programs
US brands should explore government trade programs designed to ease import costs. Programs like FTZ (Foreign-Trade Zones) allow companies to defer or reduce tariff payments while goods are stored or assembled within the US. Duty drawback programs offer refunds on duties for products that are imported and later exported. These programs can significantly reduce the overall impact of tariffs when used strategically.
Negotiate with Suppliers
Brands should also negotiate directly with their suppliers to share the burden of rising costs. Suppliers may be willing to offer volume discounts, reduced per-unit pricing, or extended payment terms, especially if they want to maintain long-term relationships. Open and strategic negotiations can ease financial pressure and keep product pricing competitive.
Consider Nearshoring or Onshoring
Moving production closer to the US can reduce both tariff exposure and shipping delays. In some cases, reshoring manufacturing to the US itself may be viable, especially for products with high margins or automated production capabilities. While this may require upfront investment, it can lead to more resilient and agile supply chains over time.
While the future of US trade policy remains uncertain, one thing is clear: brands that act quickly, stay agile, and invest in resilience will be best positioned to thrive. Whether that means revisiting your supply chain, optimizing pricing strategies, or finding the right partner to scale with confidence, now is the time to adapt.
"Spreetail is better positioned than anyone to win in this environment. You [Spreetail] move fast, partner with brands, and study the data to make decisions and get things done." - Scott Schellhase, President, Bestway USA
Spreetail partners with brands to do more than just optimize fulfillment and drive channel growth—we help them stay resilient in the face of challenges like today’s evolving tariff landscape. Through predictive analytics, enhanced supply chain visibility, and data-driven promotional strategies, we empower brands to pivot quickly and make smarter, faster decisions. Whether it’s implementing cost-saving tariff mitigation tactics like First Sale and HTS code auditing or accelerating order cycles and leveraging localized fulfillment to reduce lead times, Spreetail delivers the strategic support brands need to maintain momentum and stay competitive, even in turbulent times.
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