📦 9 tariff fixes

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If you thought the last trade war was bad, buckle up.

Trump’s back with a 125% tariff on Chinese imports and a 10% global tariff. It’s not just political posturing — it’s killing DTC margins.

If you import anything — even packaging or components — you need to understand how this hits your margins and what to do next.

In this issue:

🔍 The facts
📉 Assess your exposure
🛠️ Tactical responses
🇺🇸 SnapPad’s approach
🧰 Useful tools

🔍 THE FACTS

Tariffs just got real

If you're importing products — or even just components — into the U.S., it’s time to pay attention.

As of April 2025, here’s what’s happening:

• Tariffs on Chinese imports have been raised to 125%.
  That’s not a typo. If you're sourcing from China, your costs are effectively more than doubling — instantly.
  

• A universal 10% tariff now applies to imports from most other countries.
  This is part of a 90-day “pause” to avoid wider retaliation, but make no mistake: this is active policy.
  

• China has retaliated, raising tariffs on U.S. goods to 84% and blacklisting 11 major American companies.

What does this mean for you?

If you sell electronics, apparel, home goods, or practically anything with supply chain ties to China — even packaging — you’re about to see margin compression, cost surges, and hard choices on pricing.

This is not a drill. It’s a new reality for DTC founders heading into summer 2025.

📉 ASSESS YOUR EXPOSURE

How to run your diagnosis

Don’t: make (even educated) guesses and hope for the best 🤞 

Do: get radically clear on how a tariff shock would hit you by SKU, by channel, and by unit economics.

Here’s your step-by-step 👇️ 

Break out your real landed cost per product:

• Manufacturing

• Packaging

• Duties and freight

• Pick and pack

• Platform fees (Shopify, Amazon, etc.)

• Average discount

• Return %

  → Then add in potential tariff increases

If you’re importing a $10 product from China and a 125% tariff kicks in, your cost just went to $22.50 — before freight and fulfillment.

Most founders don’t have this model at their fingertips. If that’s you, fix that. Because if your math is off, your strategy will be too.

🛠️ TACTICAL RESPONSES

How to tariff-proof your business

Once you’ve run the numbers and mapped out the damage, it’s time to do something about it. Here’s where to start:

1. Re-Evaluate Product + Channel Mix

Once you know your margin impact, it’s time to ask:

• Which SKUs just became unprofitable?

• What’s your new break-even CAC for hero products?

• Do this by channel — does your Amazon channel still make sense with all their fees layered on?

You might have to temporarily pause certain products or bundles. You might need to shift where or how you sell them. Now’s the time to be ruthless, not sentimental.

2. Opt for higher margin channels

Your best two options:

1. TikTok influencers (more on this next issue!)

2. Organic acquisition 👇️ 

3. Consider Adding a Tariff Fee at Checkout

There’s also the option of adding an additional tariff fee at checkout — kind of like shipping or taxes.

Yes, customers generally hate added fees. But, just like with shipping, you can:

• Offset it through loyalty points or bundling

• Threshold it (i.e., free tariff coverage over $100)

• Message it clearly as a temporary response to unfair import costs

I talked about free shipping tactics before: 👉 The Hidden Math of Free Shipping

It’s not ideal — but it may be a better alternative than gutting your margins or cutting quality.

4. Optimize Everything That Moves

• Packaging & Freight: Audit your DIMS (dimensions and weight). If you can slim down packaging even a little, you might save real money on freight and fulfillment.
  

• Consumables? Shrinkflate. If you’re in CPG, it might be time to reduce the amount of product per unit while keeping the package (and price) consistent. 

Yes, it sucks. But sometimes survival > pride.

5. Raise Prices — But Do It Right

Everyone’s first instinct is to bump prices. But few do it well. Here’s the play:

• Be transparent. Tell your customers exactly why it’s happening.

• Be empathetic. Frame it as a decision made to preserve quality, jobs, and your future.

• Be clear. A single, direct email or product page update works better than passive-aggressive price creep.

6. Squeeze Your Vendors

You’re not the only one sweating. Some vendors are stepping up with “tariff assistance” offers — like Settle’s program to help brands offset short-term cost spikes. Check it out 👉 Settle’s Tariff Program

Take this as permission to go back to all your partners:

• Ask for temporary pricing relief

• Push for flexible terms

• See if they'll share freight or storage costs

If you don't ask, you won’t get it.

7. Consider Bonded Warehousing

If you’re importing large volumes, bonded warehouses let you store goods without paying duties upfront.

They’re underutilized in DTC but can be a cash flow lifesaver when margins get tight — especially if you're forecasting volatility or staggered fulfillment windows.

8. Trim the Fat (Again)

Yes, most DTC teams already run lean. But it’s worth another pass:

• Unused SaaS tools?

• Unproductive ad spend?

• SKUs that aren’t pulling their weight?

Cut the fat — keep the muscle.

9. Start Exploring Alternative Suppliers

• Domestic Manufacturing: Might not be as expensive as you think — especially once you factor in tariffs, freight, and delays.
  

• Platforms like Supliful: Great for CPG brands looking to spin up U.S.-made SKUs with no minimums.
  

• Look Beyond China: Even if you’re not ready to make things in the U.S., shift your risk by sourcing from Vietnam, India, Mexico, Canada, or Eastern Europe. Trump’s rhetoric and tariffs have zeroed in on China — don’t let your supply chain sit on a live wire.
  

• Leverage USMCA: Products made in Mexico or Canada may fall under exemptions. If you can’t make the jump to domestic, at least diversify within the continent.

🇺🇸 SNAPPAD’S APPROACH

Leaning into “Made in the USA”

Luckily for us at SnapPad, our products are made in the U.S.

We’ve leaned into the “Made in the USA” halo in the past, but now we’re planning to test new messaging like:

“We’re not raising prices or adding a tariff fee — because we make our products here.”

Simple. Direct. Timely. And it reminds people that buying domestic isn’t just patriotic — it’s a hedge against chaos.

🧰 USEFUL TOOLS

Measure and plan

Need help modeling your exposure or figuring out your next move? These tools can help:

• 🧮 Tariff & Import Duties Calculator
  Plug in your HS code, product category, and country of origin to estimate your new landed costs.
  👉 Use the Freightos Calculator
  

• 📰 Live Blog: Tariff Announcements + Global Trade Impact
  Flexport is tracking updates in real time — including policy shifts, trade retaliation, and economic impacts.
  👉 Flexport’s 2024 Tariff Blog
  

• 📘 Ecom Tariff Survival Guide (Podcast + Guide)
  A practical breakdown of how eComm brands can stay alive and adapt through tariff pressure.
  👉 Read + Listen Here

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