Will The Trump Tariffs Hurt Your E-Commerce Business?

I sell products from China. Last week, one of my suppliers told me to get ready for “added costs next order” due to Donald Trump’s tariffs.

I wasn’t happy about that, but No, Trump’s tariffs won’t upend my e-commerce business selling physical products on Amazon.

An additional 25% cost on all my inventory is bad for short-term cash flow, medium-term profits, and long-term growth.

But I have no doubt that I’ll adapt, like I always do. Like all business owners do.

How Much Do You Already Pay In Taxes?

We already pay import duties (just lower ones) as well as payroll taxes, property taxes, sales tax, and after all those are accounted for… income tax. European importers have dealt with a 20%-on-everything VAT.

How Much Is The Increase Anyway?

If you’re currently paying 10% import duties, then this is a 15% increase. If your COGS (cost-of-goods-sold) is 20% of your final sales price, then the Trump Tariff increases amount to 15% of 20% of your final margins. (3% difference in margins) Bad, but not cripple-my-business bad.

Did You Expect Smooth Sailing?

I didn’t go into business expecting no problems. This problem was created by the government and not by a competitor, Amazon.com, a patent troll, a freelancer/employee, or my own mistake. But it’s still just a problem to solve. This is part of doing business.

What’s My Action Plan?

I don’t cry when it rains. Trump isn’t the first politician to pass business-friendly or business-unfriendly regulations, on either the left or the right. Unlike some e-commerce sellers like Mike Jackness of the exceptional E-com Crew Podcast, I will not purposefully slow down growth or product launches because of these tariffs.

Rather than focusing on a 3% hit to margins, let me focus on 300% growth for the entire business.