How Will Businesses Adjust?
The new de minimis adjustment still requires a 54% tariff, although this can be swapped out for a flat fee of $100 per package. A proposed flat fee increase to $200 was set to take effect in June 1 but, with the latest changes, this has been cancelled.
We’ve previously covered what to expect from the tariff hikes: Higher consumer prices, more shipping delays, and a shift in business models as companies that used to outsource either shift to a US-based supplier, shut their doors, or tighten their margins while increasing prices.
It’s a tough time to be a dropshipper, unless you’ve been operating with massive margins or you already source from the US. Even ecommerce companies based outside the US are shifting to US suppliers, if the changes Temu has announced are any indication. The new tariff pause and the lower 54% de minimis duties might help make some decisions easier, but they won’t change the overall trajectory set by all the new international taxes we’ve seen in the past couple of months.
