Tariffs are here—and they’re messing with more than just your margins.

For some, that’s just politics. Others are worried about their living standard. Yet, some are praising the move.

But if you’re running an ecommerce brand in 2025, the US administration’s latest moves are more than that. They can be your next big headache.

In this article, we’ll try to explain what you really need to know to stay ahead, stay lean, and keep selling.

Trump’s Tarrifs Explained (Like You’re Five)

President Donald Trump’s tariffs for 2025 are taxes imposed by the U.S. government on imported goods from other countries, aimed at raising revenue and influencing trade relationships.

What’s the big idea: Trump administration imposed tariffs primarily as a way to protect U.S. industries and reduce trade deficits, especially with countries like China. 

The idea was to make imported goods more expensive, encouraging consumers to buy domestic products and to force other countries into trade negotiations to improve terms for the U.S. 

In essence, tariffs are used as a tool to try and balance trade, protect American jobs, and leverage bargaining power in international trade agreements.

How it transpires: These tariffs could result in higher prices for goods imported from countries like China and Hong Kong—as well as increased complexity at customs, with delays and additional fees for imports.

Here’s an interesting graphic that showcases it:

If you’re an ecommerce merchant, you may face rising costs for imported products. 

Of course, this can lead to higher prices for consumers or reduced profit margins, which could result in changes to pricing strategies and fulfillment models.

1. Tariffs Could Cut Social Media Ad Spend by $10 Billion

According to Emarketer, new tariffs are expected to reduce US social media ad spending by $10 billion in 2025: 

What does this mean? Less ad budget flowing into platforms like Meta and TikTok, of course.

International brands, especially those from China (Temu and Shein), could cut ad budgets. As a result, this could reduce competition for domestic advertisers.

Why this is good for you: If you’re a domestic advertiser in the US, you’ll face less competition by Chinese big marketplace brands.

Why this is bad for you: Reduced spending from the big players might force huge ad platforms like Meta to increase costs to offset said losses. 

Meaning you might be pay more, despite less competition. 

That’s why it might be good to consult an ecommerce expert.

2. Consumers Will Shift Towards Essentials and Discount Brands

One of the most obvious tariff impacts is the impact on the wallet.

Rising prices will drive consumers to seek essentials and discount brands. This means people will start prioritizing affordable and value-driven products instead of luxuries and non-essential items.

If you’re a merchant or marketer, you might want to focus on private label products or offer discount bundles to cater to budget-conscious consumers.

Try to tailor your marketing messages to highlight affordability and value to maintain customer loyalty during these uncertain times. 

Remember: Retention is vital. Try to send dedicated ecommerce email campaigns where you’ll highlight your offers and budget. 

3. Retail Sales Are Expected to Decline in 2025

Most reports suggest that retail sales will also decline by 1% YoY if we have a heavy tariffs scenario.

Doesn’t sound like much, but under the light tariffs, we’d actually see an almost 3% YoY growth if you’re to believe forecasts. 

So the tariff “volume” can greatly impact how much you sell, regardless of whether you’re doing well or not. If you’re doing good, you won’t do as well. If you’re doing bad… well, you’ll do worse.

It makes sense. Increased product prices and supply chain issues will make consumers more selective in their purchases.

What you can do: Adjust your inventory and marketing strategies to focus on low-cost alternatives and essential goods. 

Consider offering exclusive promotions to drive sales in a declining market.

4. Ecommerce Growth Will Slow Down

Increased import duties. Shipping delays. 

The suspension of de minimis for shipments from China and Hong Kong will increase costs for small, low-value shipments which could impact your supply chain and therefore, your growth.

In this scenario, you’ll probably be better off looking for alternative suppliers in countries that are less impacted by tariffs—such as Vietnam, Indonesia, or Latin America.

Also, you might want to review your logistics and fullfilment strategies to maintain competitive pricing.

5. Shift to Performance-Driven Ad Spend

Performance, performance, performance. And results.

With rising costs, advertisers will increasingly prioritize performance-driven ad channels that offer measurable returns. 

As tariffs increase, companies in sectors like automotive and electronics will focus on short-term ROI rather than brand-building efforts.

If you’re a merchant, you might want to double down on performance marketing. 

Leverage Google Search and retail media for measurable ROI, and consider shifting spend away from brand awareness campaigns to lower-funnel ads with direct conversion outcomes.

There’s also a case for diversifying your ad spend to more performance-driven platforms (like Google Search and CTV). 

Finally, adjust your strategy to capitalize on the decreased competition on social media platforms.

6. Smaller Retailers Will Face Bigger Challenges

Smaller e-commerce businesses, especially those relying on international goods, will feel the pinch from the rising costs and tariffs.

Tariffs on Chinese-made goods will lead to higher prices, supply chain disruptions, and potential inventory shortages.

What you can do: Focus on niche markets that are less dependent on imported goods and localize your supply chain where possible. 

Look for ways to adjust pricing strategies without sacrificing margin or customer loyalty.

7. Prepare for Ongoing Supply Chain Disruptions

Tariffs will disrupt supply chain, particularly for businesses relying on Chinese imports.

The increase in customs duties will add complexity to cross-border fulfillment, especially for lower-value products.

Advice for you: Diversify suppliers and warehouse inventory regionally to reduce reliance on international shipping.

 Look for ways to optimize your fulfillment model with in-country fulfillment to reduce tariffs and delivery delays. 

Consolidating shipments to avoid multiple customs entries can also help save on fees.

Which Industries Could be Impacted by Tarrifs the Most?

Since we’re an ecommerce agency, of course we’re following the impacts on tariffs on the industry. It directly impacts our clients, too.

And it’s good to know how vulnerable you are so you can adapt.

Here are some industries that might be most impacted by tariffs.

Consumer Electronics

Why it’s affected: This sector relies heavily on imports from China, which face higher tariffs (up to 145% for certain items). 

With supply chain disruptions and increased production costs, consumer electronics brands are expected to either pass on the cost to consumers or absorb the losses, both of which could hurt sales.

What to expect: Price hikes will likely push budget-conscious consumers to seek alternatives. Additionally, shipping delays could lead to inventory shortages, making it difficult for brands to meet demand, particularly for electronics sourced from Asia.

Actionable Tip: Focus on competitive pricing strategies, diversify suppliers, and consider adjusting fulfillment models to minimize reliance on impacted regions.

Automotive

Why it’s affected: The automotive industry will be heavily impacted by tariffs, as many parts and components are sourced from China and other countries now subject to significant duties. 

Even US-made vehicles could face higher production costs if parts are imported. Additionally, retailers in this sector may need to raise prices due to rising import tariffs on components, which could reduce consumer demand.

What to expect: Increased prices could drive consumers toward used cars or smaller vehicles, and advertisers may reduce spending on automotive ads, particularly for traditional TV or print campaigns, as budget-conscious consumers feel the pinch.

Actionable Tip: Promote long-term value and consider diversifying marketing tactics to highlight durability and fuel efficiency in vehicles.

Beauty & Personal Care

Why it’s affected: Beauty products—especially imports from South Korea and France—are directly impacted by the new tariffs, with tariffs of up to 25% for Korean imports and 20% for French goods.

Additionally, packaging components sourced from China will see tariffs of at least 145%, making production costs rise significantly.

What to expect: Higher product prices could lead to fewer purchases, especially among price-sensitive shoppers.

However, the shift to online shopping, especially through platforms like Amazon and TikTok, will help the sector remain somewhat resilient.

Actionable Tip: Focus on online marketing to reach a wider audience and highlight the value of your products, as younger consumers are still spending on beauty. Leverage social platforms like TikTok to drive impulse buys.

Apparel & Footwear

Why it’s affected: Apparel and footwear are highly reliant on overseas manufacturing, particularly from China and other tariff-impacted countries.

With tariffs affecting these categories, prices are set to rise, especially for imported goods. 

Consumers may cut back on discretionary spending, opting for cheaper alternatives or US-made goods.

What to expect: Price increases will likely drive consumers to seek discounts or cheaper alternatives, which could hurt luxury apparel brands or those without a strong domestic presence.

Actionable Tip: Focus on value-driven products, offer discounts or bundles, and promote US-made alternatives to capture the price-sensitive market.

Fast Food & Restaurants

Why it’s affected: Fast food is considered a luxury by a significant portion of consumers, especially those with lower incomes. Tariffs on imported goods, particularly ingredients and packaging from China, will increase operational costs for fast food chains. If prices rise, customers may cut back on eating out, especially in fast-casual restaurants.

What to expect: Reduced consumer spending on dining out, especially among lower-income groups, will hurt fast-food restaurants the most, while full-service and fast-casual restaurants will also experience a drop in demand.

Actionable Tip: Prove value by offering special deals and loyalty programs, and consider focusing on promotions like bundle meals to attract cost-conscious customers.

Bottom Line: Navigating Tarrifs

As an eCom merchant, you cannot do much to mitigate the impact of tariffs.

But you can still make a small difference, which can help you sail smoother:

Focus on Value: Regardless of the industry, merchants must highlight value in their offerings. Consumers are becoming more price-sensitive, so ensuring your product is seen as a good investment or deal will be crucial to retain customers.

Transparency in Pricing: Consumers want transparency, especially when it comes to price increases. If tariffs are driving up costs, be clear with customers about why prices are rising and offer deals, coupons, or loyalty rewards to make the increases feel more justifiable.

Adapt Fulfillment Models: For sectors with significant import reliance, rethink fulfillment strategies to mitigate the impact of tariffs. Whether it’s localizing your supply chain or finding new suppliers, it’s critical to stay agile to avoid major disruptions.

Finally, you can always reach out for help. A number of our clients have been impacted by tariffs—so we’re seeing the changes first hand.

If you need any help with budgeting consultation, eCommerce advice, or even campaign management during this time, make sure you reach out.