Latest News On Trump Tariff on China
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Tariff Increase: On April 9, 2025, President Trump signed an executive order raising the reciprocal tariff rate on China from 34% to 84%, bringing the final rate to 104%. This was in response to China not repealing the 34% duty it placed on US goods by April 8, as Trump had demanded. However, hours after the 104% tariff took effect, Trump further increased the tariff on Chinese imports to 125%.
- The total Tariff on Chinese imports now 145% for some products due to the new 125% being applied on top of the existing 20% levy imposed on those producing the drug fentanyl .
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China's Retaliation: In retaliation, China raised its tariffs on US goods from 34% to 84%, effective April 10, 2025.
- Small value goods (The de minimis exemption) defined as below $800 USD. Initially set to raise to 90% of the product value or apply a fixed cost of $75, the new rate will be 120% of the product value or $100 fixed cost on May 2nd, and rising to $200 per item after June 1.
Introduction
Regardless of whether you are a Print On demand seller, local business owner in the US or otherwise. The Trump tariffs are affecting everyone in nearly all aspects of their lives.
The latest announcement mentions a staggering 145% tariff on Chinese imports has not been well received across global trade. In fact, it has significantly impacted e-ecommerce and print on demand (POD) industries that rely on affordable Chinese goods.
Marking up the costs 145%, and in the end, this is passed on to the end customer in the US who are purchasing these goods directly or through the companies that import them.
For small businesses and POD sellers the problematic issue lies in the tariff for small value goods (defined as below $800 USD). Initially set to raise to 90% of the product value or apply a fixed cost of $75, the new rate will be 120% of the product value or $100 fixed cost on May 2nd, and rising to $200 per item after June 1.
Given this new reality, E-commerce and POD sellers alike will need to revisit their strategies and prepare for an ever more turbulent market.
Read on as this blog will look at the Trump tariff in detail and explore how POD sellers can adapt, diversify and thrive in a tariff-heavy landscape.
Background on Trump’s Tariffs
Why are there suddenly so many tariffs and what do they mean? Tariffs are taxes imposed on imported goods, designed to make foreign products more expensive and less competitive with domestic ones.
The current situation is that The U.S. imports way more than Chinese goods from China than it exported leading to a trade imbalance called a deficit. By imposing these tariffs, Trump aims to boost American manufacturing and encourage companies to source goods domestically or from alternative suppliers.
Timeline of Trump’s Tariffs
- February 1, 2025: Trump signs an executive order to impose tariffs on imports from Mexico, Canada, and China — 10% on all imports from China and 25% on imports from Mexico and Canada starting Feb.
- February 4, 2025: The 10% tariff on Chinese imports takes effect.
- March 4, 2025: Trump's 25% tariffs on imports from Canada and Mexico go into effect. He also doubles the tariff on all Chinese imports to 20%.
- April 2, 2025: Trump announces his long-promised "reciprocal" tariffs — declaring a 10% baseline tax on imports from all countries, as well as higher rates for dozens of nations that run trade surpluses with the U.S. He also signs executive orders enacting the reciprocal tariffs and closing a U.S. loophole that allows duty-free shipments of Chinese goods worth less than $800. Find out more.
- April 5, 2025: The 10% universal tariff takes effect.
- April 9, 2025: The new tariff rates for Chinese goods will be 145% which is 125% plus the existing 20% of the pre-existing tariffs on Chinese goods. President Trump set the initial tariff rate on packages worth less than $800 at 90% of the product value value or $100, effective on May 2. The new rate will be 120% of the shipment’s value or $100, rising to $200 after June 1.
- April 10, 2025: China's 34% tariff on US goods takes effect.
- May 2, 2025: The duty-free de minimis treatment for low-value goods from China and Hong Kong will be eliminated.
How Trump’s Tariffs Are Reshaping the POD Landscape
For U.S.-based POD sellers and international businesses targeting American consumers, this policy greatly affects their costs, supply chains, and competitiveness.
Let’s break down the fallout and explore strategies to adapt;
How are Trump’s Tariffs Calculated?
For U.S.-Based POD Sellers: Rising Costs and Supply Chain Squeezes
Turbocharged Production Costs Tariffs on Chinese raw materials, blank apparel, and printing equipment have become a financial kick for POD businesses. The new 104% tariff stacks atop existing duties like the 34% reciprocal tariff and 10% universal levy, but the June 1 update adds fuel to the fire:- Small-value shipments now face a 120% tariff spike (up from 90%) **or a $200 fixed fee double the previous $100 fixed fee (after June 1), a brutal hit for low-volume sellers testing new designs.
- Blank apparel: With over 80% of U.S.-sold apparel imported, tariffs of 120% mean a basic 2 T−shirt could now cost $4.40 ($2 × 120% = $2 × 1.2 = $2.40 and then add to original amount: $2 + $2.40 = $4.40).
- Printing machinery: Chinese-made DTG printers hit with 90% tariffs could see prices leap from 10,000 to 19,000 overnight, forcing sellers to absorb costs or delay upgrades.Supply Chain Bottlenecks
The elimination of the de minimis exemption has gone nuclear. Post-June 1, even simple fabric shipments face a 90% increase. Logistics analysts warn:
- Retaliatory Tariffs: China’s 34% tariffs on U.S. cotton now squeeze domestic suppliers too, potentially creating shortages.
For International Sellers Targeting the U.S.: A Competitive Minefield
International POD sellers now face a Sophie’s Choice: swallow 120% tariffs or bleed profits with up to $200 fees. For example:- A Temu seller offering a $15 printed hoodie could see costs rise a further $18 after tariffs, making it harder to compete with U.S.-based rivals.
- Platforms like AliExpress and Shein, which rely on direct-to-consumer shipments from China, face added pressure to shift inventory to U.S. warehouses — a costly pivot for small sellers.
- China’s 34% retaliatory tariffs on U.S. goods like cotton and machinery further strain cross-border trade, while U.S. consumers grow increasingly concerned with price hikes. A Yale study estimates tariffs could raise household costs by $3,000 annually, pushing buyers toward cheaper, non-tariffed alternatives.
Adapting to the New Normal: Strategies for POD Sellers
Diversify Target Country
It’s important to note that increasing costs of doing business mostly isolated to the U.S. Thankfully the advantages with the POD business model is that they offer Global fulfillment meaning that with some adjustments, sellers could set their sights on countries with less or no increased tariffs like Canada, Australia and Europe.
Emerging Key POD Markets
Canada’s print-on-demand market is a lucrative opportunity, poised to grow at an impressive compound annual growth rate (CAGR) of 27.6%, reaching $2.28 billion by 2030. Meanwhile, Europe is set to outpace many regions with a CAGR of 26.3%, boasting a projected market value of $8.25 billion by 2030 and Australia is expected to reach a projected $195.2 million by 2030, which is a compound growth of 12.5%.
Not only does it make for a smart tactic to target counties to avoid the hefty U.S. tariffs, but since two regions naturally speak English, with the last one being more than capable of communicating in English, it reduces the need to make larger changes and reduces the time to retarget.
Business Strategies for POD sellers
Perhaps the single biggest advantage for POD sellers is their personalization on the products which can attract a premium price. Take a T-shirt for example, you are not selling the product, it’s your design you add on that people are buying and your designs are highly valuable. Therefore, you could;- Optimize Pricing: Offer tips on adjusting pricing strategies to account for increased costs without alienating customers.
- Focus on Branding: Stress the importance of creating unique, high-quality designs to stand out in competitive markets.
- Expand Product offerings: Locate other POD suppliers that offer new products and services to sell to new regions.
Future Outlook for POD in a Tariff-Heavy World
We can only speculate on what the future will be like with the ongoing trade war. The POD industry will likely see significant changes in its cost structure and reliance on international supply chains.
Opportunities for Sellers Who Adapt Early
- Zero upfront costs: Build a free website and upload personalized products for free to sell. Only pay for the goods once you sell them.
- No Minimum Order Quantity (MOQ): Sell 1 product? We will print and ship one product. Forget about warehousing and paying for inventory in advance.
- Fulfillment and shipping all handled: Focus on marketing and selling your products, all the rest, we handle for no extra fee.
- No inventory: No large stocks held up, no warehouse fees. We print and ship directly.
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