International Trade & Tariffs Impact on Brands

What's changed / changing?

A flat tariff of 20% may be applied to all Country of Origin China products. Based on the sale price and not the cost of goods.
The De Minimis exemption no longer applies (White House paused this tariff on 2/8)
If implemented additional new fees will result in increased cost of goods sold

Many merchants leverage 3PLs in Mexico and Canada to receive shipments from China, process abroad, and then ship parcel packages to the U.S.
The de minimis exemption allowed brands to ship packages valued <$800 and not pay duties. This is currently still in effect but brands should prepare for it to change.
A flat tariff of 25% may be applied to all Country of Origin Mexico or Canada products, or products simply imported from Mexico or Canada. Based on the sale price and not the cost of goods. (White House paused this tariff on 3/6 for goods compliant with the USMCA)

Brands may face retaliatory tariffs on exports to these countries:
- China has imposed up to 15% retaliatory tariffs on some U.S. goods
- Canada has imposed 25% retaliatory tariffs on U.S. goods
- Mexico plans to announce retaliatory tariffs soon
- The EU has announced tariffs on certain U.S. goods worth around $28 billion (26 billion euros), that are planned to go into place starting on April 1st

The de minimis exemption of no duties for items <$800 still applies….for now

How brands can respond

Step 1: Examine your supply chain

By working with reliable domestic fulfillment partners, merchants can address rising costs and demand sensitivity while ensuring a smooth transition to U.S. or regional fulfillment solutions.

Step 2: Prepare for an increase in Cost of Goods (COGs)

Merchants should partner with providers who ensure compliance agility, accurate landed cost calculations, timely customs declarations, multi-carrier network flexibility, and global supply chain optimization for both B2B and DTC operations.

Step 3: Stay Informed

With constant changes and shifting dynamics, it’s important for merchants to identify reliable sources of information by connecting with peers, communities, and vendors to gain insights into what others are doing to thrive in challenging times.

Hear from experts in the space (more to come)

Loop Blog

International trade & tariff changes: what brands need to know

Stay ahead of critical changes in international trade policies affecting U.S. brands.

Updated on Mar 12

Expert Analysis

Section 321: Expert perspective from Kyle Hency, Co-founder/CEO at GoodDay

Learn more about what losing the de minimis exclusion could mean from our expert’s perspective.

Updated on Feb 11

Expert Analysis

Is Section 321 Dead? Navigating Tariff Changes in 2025

Hear from cross-border logistics experts Flavorcloud, on what’s changing and how to prepare for new tariffs and regulations.

Updated on Feb 19

Need help navigating these changes?

We’re here to help you with all of these steps. Reach out to Loop’s Partner team at partnerships@loopreturns.com if you need recommendations for trusted experts, consultants, and logistics partners in the international trade space.

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Help & support

Feeling overwhelmed by trade changes + what they mean for your brand? We're here to help!

Read on for up-to-date information on what’s happening and how to make sure your brand is prepared to navigate these changes successfully ↓

What's changed / changing?

Brands manufacturing products in China and selling to the U.S.

Brands with fulfillment centres abroad, selling to U.S.