How to Overcome the 10% Tariff on Chinese & Hong Kong Imports: A Guide for eCommerce Brands

(UPDATE 10/2/2024: This article references the removal of the $800 de minimis exemption for shipments entering the US. As of 8th of February, The White House has temporarily delayed the removal of the de minimise exception until “adequate systems are in place to fully and expediently process and collect tariff revenue”).

The landscape for eCommerce brands shipping Chinese and Hong Kong-made goods into the US has changed significantly. On 1st February 2025, the White House announced a 10% tariff on all imports from China and Hong Kong, effective from 4th February 2025.

This change, combined with the removal of the $800 de minimis exemption, means that many businesses will face increased costs and potential delays when shipping directly from China. Additionally, if a Chinese or Hong Kong-made product is first shipped to a UK fulfilment centre and then sold to the US, it may still be subject to the tariff depending on its country of origin classification under US trade regulations.

If your brand relies on Chinese manufacturers, here’s what you need to know—and how J&J Global Fulfilment’s US fulfilment centres can help you navigate these changes efficiently.

Understanding the Impact of the New Tariffs

The recent tariff changes have created uncertainty for many eCommerce brands, raising concerns about increased costs, shipping delays, and compliance complexities. While these challenges may seem daunting, solutions exist to help brands adapt and minimise disruption. The industry is still assessing the full impact of the new tariffs. However, many eCommerce brands will feel some effects immediately.

1. 10% Tariff on All Chinese and Hong Kong Imports

Previously, many low-cost shipments avoided tariffs under the de minimis rule. Now, all goods made in China and Hong Kong, regardless of value, are subject to the 10% tariff.

2. Entire Shipments Can Be Taxed Based on a Single China or Hong Kong-Made Item

If even one product in a multi-item shipment is of Chinese or Hong Kong production, the entire shipment is subject to the tariff. This makes sourcing and inventory planning more complex for eCommerce brands.

3. Higher Costs for Brands and Consumers

If your business is not using Delivered Duty Paid (DDP) shipping, the tariff costs will likely fall on your end customers—potentially leading to increased cart abandonment and customer dissatisfaction.

4. Customs Delays and Compliance Issues

As importing Chinese and Hong Kong-made goods into the US becomes more complex, brands could face delays at customs in both the short and long term.

How US-Based Fulfilment Can Minimise Your Tariff Burden

There is no doubt that these new tariffs will impact eCommerce brands worldwide, as many rely on China for at least part of their manufacturing. However, fulfilling orders from within the US, rather than importing them one by one, can help mitigate the unpredictability of these issues.

With rising costs and logistical complexities affecting brands worldwide, finding a viable solution is crucial. Let’s explore how US-based fulfilment can help you avoid some of these challenges.

Cost Comparison: Direct-to-Consumer (DTC) Shipping vs. US-Based Fulfilment

For brands currently shipping directly from China to US customers, the new tariffs could significantly impact overall costs. By switching to US-based fulfilment, you can:

• Avoid per-shipment tariffs by importing goods in bulk
• Pay duties on the cost price of goods rather than the retail price of goods
• Reduce customs clearance delays and potential fines
• Benefit from predictable pricing and streamlined operations
• Prevent the end customer from paying needless admin fees

Scalability Benefits

Keeping stock in a US fulfilment centre allows brands to forecast demand more accurately and replenish stock efficiently. This minimises supply chain disruptions and ensures customers receive products without unexpected delays.

Customer Satisfaction & Brand Perception

Fast, reliable shipping is crucial in eCommerce. With US-based fulfilment, brands can:

• Offer two-day domestic shipping, reducing cart abandonment
• Eliminate customs-related delays, improving customer satisfaction
• Prevent surprise import fees that can frustrate customers and reduce repeat purchases

Mitigation of Future Tariff Risks

Trade regulations and tariffs are subject to change, and rates could increase further in the future. A US-based fulfilment strategy provides long-term stability, ensuring brands are not constantly affected by shifting global trade policies.

With these new regulations in place, storing inventory within the US is now a smarter and more cost-effective strategy. By utilising J&J Global Fulfilment’s US warehouse, you can bypass many of the challenges posed by direct-to-consumer (DTC) shipping from China.

Benefits of US-Based Fulfilment:

For non-US businesses, breaking into the US market can be challenging when exporting from overseas territories like the UK. US-based fulfilment helps overcome these barriers and ensures access to the largest eCommerce market in several ways

• No unexpected tariffs on individual customer orders
• Faster shipping times (two-day delivery options across the US)
• Improved customer experience
• Bulk shipping advantages—import in larger quantities to optimise costs
• Increased control over inventory and demand forecasting
• Better conversion rates, more frequent repeat purchases, and higher customer lifetime value from US-based customers
• Can price competitively with US brands

Why Choose J&J Global Fulfilment?

We understand that the recent changes in trade regulations and tariffs can feel overwhelming for eCommerce brands. The uncertainty around costs and shipping logistics can be frustrating and disruptive. 

That’s why J&J Global Fulfilment is here to help. Our solutions are designed to future-proof your operations, offering stability and efficiency so you can focus on growing your business. 

Our US fulfilment centres provide:

• Inventory solutions that ensure compliance with changing tariff regulations
• Bulk shipping strategies that minimise per-shipment tariff costs
• Expert customs and compliance support to navigate evolving trade policies
• Scalable fulfilment designed to reduce import complexities and delays

With the latest tariff changes, ensuring your logistics strategy is built for resilience is more important than ever. By keeping stock in the US, your business can avoid tariff-related challenges, reduce costs, and maintain a competitive edge.

Let’s Talk: Future-Proof Your Fulfilment Strategy Today

Want to discuss how we can help your brand navigate these tariffs and protect it against future implications? Our team is here to help. Please don’t hesitate to get in touch.

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