What Every Brand Should Know About the Current Tariff Landscape

**This article is set to be updated as changes happen to provide the most accurate information**

Tariffs—taxes on imported goods—have long been used by governments to protect domestic industries, raise revenue, and influence global trade. In the U.S., tariffs were a primary income source from the Tariff Act of 1789 until World War II, when the country shifted toward free trade and open markets. However, since 2016, a new wave of protectionist policies has brought aggressive tariff changes aimed at reshaping trade and supporting domestic manufacturing. As trade dynamics continue to shift, the landscape is more volatile—leaving businesses, industries, and consumers grappling with uncertainty.  

To help brands navigate this complex environment, we’ve outlined the most recent tariff changes and gathered expert perspectives on how businesses can pivot, build resilience, and remain competitive in the face of evolving global trade dynamics.

What the Experts Have to Say

To better understand the current tariff landscape, its implications for ecommerce, and how brands can strategically adapt, we sat down with Spreetail’s Chief Merchandising Officer, Owen Carr, and Senior Director of Inbound Transportation, Melissa Contrevo, for an in-depth discussion tackling the most pressing questions.

1. How are tariffs affecting the cost structures for brands and their suppliers?

Tariffs imposed on imported goods can have a significant impact on ecommerce businesses, often resulting in higher costs, pricing challenges, and operational disruptions. These effects can ripple through various aspects of a business, prompting many brands to reassess their sourcing strategies and supply chain models.

One of the most immediate effects is the rise in input costs. When tariffs are applied to goods sourced internationally, ecommerce businesses that rely on global suppliers face increased expenses. This can put pressure on profit margins, particularly for companies operating with thin margins or limited pricing flexibility.

To manage these increased costs, businesses are often faced with two difficult options: absorb the added expense or pass it on to the consumer. If businesses choose to absorb the cost, it can lead to profit margin compression, potentially limiting reinvestment and growth opportunities. On the other hand, passing the costs to consumers may result in higher prices, which can dampen demand and affect overall sales performance.

Additionally, tariffs can introduce significant disruptions to global supply chains. Delays increased administrative burdens, and rising transportation costs are just a few of the challenges businesses may face. These disruptions can complicate inventory planning, lead to stockouts or overstock situations, and ultimately impact the speed and reliability of order fulfillment.

2. How are brands adjusting their logistics strategies to mitigate the impact of tariffs (e.g., shifting suppliers, changing shipping routes, etc.)? 

Tariffs on imported goods pose substantial challenges for ecommerce businesses, often triggering a cascade of financial and operational impacts. From rising costs to disrupted supply chains, these changes compel brands to revisit their sourcing strategies and reevaluate their approach to inventory management and logistics.

One of the most immediate consequences of tariffs is an increase in input costs. For businesses that depend on international suppliers, this means higher expenses for products, components, or raw materials. These additional costs put pressure on profit margins—particularly for brands with limited pricing flexibility—and may hinder their ability to invest in growth or innovation.

In response to increased costs, ecommerce businesses are typically left with two options: absorb the expense or pass it on to the customer. Absorbing the cost can lead to margin erosion, which may be unsustainable over the long term. Alternatively, raising prices can suppress consumer demand, potentially hurting sales and weakening a brand’s competitive position.

Tariffs can also disrupt the broader supply chain. Increased customs scrutiny, additional paperwork, and rising transportation costs all contribute to delays and uncertainty. These challenges make it harder for businesses to accurately forecast inventory needs and maintain optimal stock levels, which can lead to stockouts, overstocks, or fulfillment delays—eroding customer trust and satisfaction.

3. What practical tips do you have for brands to navigate these challenges? Re-evaluating sourcing, looking into alternative markets? 

To navigate the complexities introduced by shifting tariff policies, brands need to take a proactive and strategic approach. One of the first steps is re-evaluating sourcing strategies and exploring alternative markets. While many businesses have traditionally turned to Southeast Asia as a solution, recent tariff increases—particularly in Vietnam—serve as a reminder that these regions are not immune to trade disruptions. Brands should consider the long-term viability of new sourcing locations and ensure they’re not simply shifting risk from one region to another.

Improving supply chain visibility is also critical. Brands must have tools and systems in place that allow them to respond quickly to changes in trade policy, tariffs, and international regulations. Rapid impact assessment is key—when tariffs change overnight, brands should be able to immediately determine how that affects cost, pricing, margins, and supply chain operations.

Additionally, brands need to take a thoughtful approach to implementing complex trade strategies. This includes understanding Incoterms, evaluating the feasibility of First Sale practices (where tariffs are calculated based on the price from the manufacturer to the intermediary), and considering tariff engineering options. These strategies can offer real financial benefits but require precise execution and collaboration across legal, supply chain, and finance teams.

Finally, aligning with distribution partners is essential. Without a unified strategy across inventory, distribution, and retail channels, inconsistencies can lead to major setbacks. Brands must orchestrate consistent pricing, inventory management, and retail strategy across all partners. Failing to do so creates a competitive disadvantage, particularly as tariff shifts force brands to be more agile and cost-conscious than ever. Strong alignment and high control across every stage of the value chain are key to weathering these challenges effectively.

Spreetail’s Stance: Thriving in Moments of Uncertainty

Tariff changes are accelerating—and while the disruption to ecommerce and global trade is real, this moment creates space for bold moves and smarter strategies. At Spreetail, we’re already evolving our approach in real time, adapting daily as new developments unfold. We see this not just as a challenge, but as a catalyst—for innovation, faster pivots, and solutions that protect and accelerate our partners’ growth.

We’ve been here before. When others pulled back during COVID, Spreetail doubled down—securing the inventory consumers actually needed. That decision fueled real growth. Today, we’re applying the same playbook: acting on data, moving with purpose, and helping brands come out ahead.

What We're Doing

Spreetail isn’t just reacting—we’re accelerating our proactive strategy:

• We're advancing initiatives like First Sale and MDDP (Modified Delivered Duty Paid) to help mitigate tariff exposure by shifting tariff calculations to manufacturer costs rather than purchase price.
• We’re building new tooling to evaluate digital shelf risk, identifying which SKUs can withstand pricing shifts—and which can’t—so we can make data-driven buying decisions in real time.
• We’re selectively accelerating domestic orders for items likely to increase in cost due to overseas components, ensuring availability before tariffs drive up prices.
• We’re staying nimble, avoiding “one-way-door” decisions. The policy environment remains fluid, and our ability to pivot will protect our partners’ interests long-term.
• We’re bringing in a dedicated tariff mitigation specialist to audit, analyze, and optimize everything from HTS codes to sourcing flows—because even a 10% improvement at this scale matters.
• We're exploring additional investments in Fulfillment Services and Cold Chain categories, which face less direct tariff risk and present new avenues for growth.

This is Spreetail at our best—fast-moving, collaborative, and built to solve complex challenges. We're here to protect our brand partners, create value where others see risk, and keep pushing forward, together.

The (Modern) Tariff Timeline: 2018 – Present

2018–2019: Initial Tariff Implementation Under Trump Administration

• March 2018: announced 25% tariffs on steel and 10% on aluminum.
• July 2018: 25% tariff on $34B worth of Chinese goods.
• August 2018: 25% tariff on an additional $16B of Chinese goods.
• September 2018: 10% tariff on $200B in Chinese imports, later increased to 25% in May 2019.

February–March 2025: Rapid Escalation of Tariff Policy

• February 1, 2025: 10% blanket tariff imposed on all imports from China.
• March 4, 2025: Existing China tariffs increased by an additional 10% while new 25% tariffs were implemented on imports from Canada and Mexico.
• March 12, 2025: Tariffs on steel and aluminum imports increased to 25%.

April 2025: "Liberation Day" and Global Tariff Baseline Introduced

• April 2, 2025: Announced a 10% baseline tariff on all imports from all countries with reciprocal tariffs on countries with the largest United States trade deficits.
• April 9, 2025: The tariff on Chinese imports were raised to 125%. Targeted tariffs on other countries were suspended for 90 days to allow time for officials to negotiate with global trade countries.

May 2025: De Minimis Threshold Changes

• May 2, 2025: De minimis rule ends for China and Hong Kong (no longer duty-free under $800). Informal and formal entry required for all shipments and are subject to MPF (Merchandise Processing Fee). The new formal entry fee will begin at $32.71 while informal fees will begin at $2.62.