US Tariff & De Minimis Shake-Up: What It Means for Retailers and How to Respond

Global markets may be stabilising in the wake of President Trump’s announcement of a “universal 10%” tariff on all imports - except on goods from China are now subject to a steep 125% levy, marking a dramatic escalation in the ongoing trade tensions.

While some may be breathing a sigh of relief and welcoming a short-term rebound, the reality is that the United States has introduced tariffs on imports at a scale not seen before. Unlike past adjustments, which had minimal influence on consumer behaviour, these latest measures represent a substantial shift with potentially far-reaching consequences.

One of the most overlooked questions is whether these costs will be passed directly to consumers. It seems unlikely that retailers could absorb such significant increases. Therefore, if passed on, the impact on consumer spending patterns could be felt not only in the US but around the globe—adding yet another layer of complexity for retailers.

Another critical development, receiving far less media attention, is the US government's review of its current ‘de minimis’ threshold. At present, goods valued at up to $800 can enter the US duty-free. However, starting May 2, this exemption will no longer apply to parcels originating from China. It is expected that a reduction—or even complete removal—of this threshold for other countries could follow. Currently, over 90% of US-bound shipments make use of this duty-free provision. The shift is expected to place significant strain on US Customs operations, with a likely knock-on effect of delays across cross-border logistics.

Where to Focus Your Efforts 

So, amidst all the noise and uncertainty, where should your focus be? Here are five key strategies to help you navigate the months ahead:

Adopt a Delivered Duty Paid (DDP) approach wherever possible to provide full cost transparency at checkout. Unexpected fees and charges will almost certainly result in higher returns and diminished trust. Now more than ever, clear and honest communication around pricing is essential to customer satisfaction.

Keep a close eye on your international orders and constantly compare actuals against forecasts. This will help you maintain margin control in a rapidly changing cost landscape. Build strong relationships with your logistics providers and customs experts—they’ll be instrumental in helping you respond to evolving regulations.

With the anticipated increase in customs processing, operational delays are likely. Ensure all your shipments are correctly documented to avoid clearance issues. Scrutinise your invoices for any errors and appeal incorrect charges swiftly. Pay particular attention to USPS performance, which may be significantly impacted.

You’ll need Plans B, C, and D in place. The regulatory landscape is evolving rapidly, and while the 10% tariff pause (excluding China) may provide short-term relief, further changes are a possibility. Take time to map out potential scenarios and define clear criteria for how your business will respond. Let profitability drive your decision-making— understanding your numbers will be essential.

Adaptability is crucial, but that is not the same as making knee-jerk decisions based solely on short-term trends. Consumer behaviour will take time to adjust to these new dynamics. Instead, focus on identifying the options that make the most sense for your business model. Define, track, and report against the metrics that matter, and use them to inform your future strategy.

Looking Ahead

With sweeping new tariffs and upcoming changes to the de minimis threshold, the global trade landscape is shifting fast. While markets may show signs of temporary calm, these policy changes represent a new era in international retail logistics— one that will demand agility, resilience, and a strong grasp of both operational detail and strategic direction.

Retailers that stay informed and transparent with their customers will be better positioned to weather the changes ahead. Focus on what you can control: your cost base, your customer communications, and your contingency planning. With the right strategies in place, you can not only mitigate risk but seize opportunity.

As the global retail landscape continues to shift, staying agile and well-informed is key. Becky, as the founder of Londra Consulting, brings this perspective through her direct work with retailers, specialising in strategic and on-the-ground operational support for omnichannel retail SMEs. She continues to track, question, and respond to the challenges shaping supply chains today.