Over the past few months, many U.S. based Shopify merchants have been watching tariff policy developments with growing concern. As the dust begins to settle and new tariff rules come into focus, merchants are starting to assess what this means for their supply chains, pricing strategies, and ultimately, their bottom lines.
As a store owner, you have to stay informed about tariffs, specifically if you are sourcing raw materials or finished goods from countries outside the United States.
Why Tariffs Matter for Shopify Merchants
Tariffs are essentially taxes imposed on imported goods. Depending on where you’re sourcing from (i.e. China, Vietnam, India, the EU, or elsewhere). The cost of getting your products into the U.S. is likely to be going up. These costs can cut into your margins if you’re not actively tracking and accounting for them.
For example, if you’re importing t-shirts from a manufacturer in Vietnam, a new or adjusted tariff could add a few percentage points to your cost per unit. That might not sound like much at first, but when you’re moving hundreds or thousands of units, it adds up fast.
Understanding the Types of Tariffs
If you’re new to tariff terminology or just need a refresher, Shopify has put together help documentation that explains the basics. Here are the three main types of tariffs you might encounter:
- Ad valorem tariffs: These are calculated as a fixed percentage of the import’s value. For example, a 10% tariff on a $100 item means you’ll pay $10 in duties.
- Specific tariffs: These are set as a fixed amount per unit, regardless of value. Think $1.50 per pair of imported shoes.
- Tariff-rate quotas: These apply a lower tariff rate up to a certain quantity, and a higher rate once that quota is exceeded. This structure is common in industries like agriculture and textiles.
Understanding which category your products fall into is key to accurately calculating your landed costs.
What Merchants Are Doing Now
We’ve talked to a number of Shopify store owners recently who are facing this directly. Some are reevaluating suppliers. Others are exploring how to pass increased costs on to customers transparently. And nearly everyone is looking for ways to track tariff-related expenses more effectively.
If you’re not already doing this, one practical step is to integrate tariff tracking into your Shopify store setup. This means capturing and storing tariff costs at the SKU level, so you can reflect those costs in your pricing whether that’s at the collection level, product detail pages, or even in how you position bundles and discounts.
What You Can Do Today
Here are a few ways to stay ahead:
- Audit your supply chain: Know where everything is coming from and what tariffs might apply.
- Update your cost-of-goods accounting: Make sure tariff costs are factored into your margins.
- Communicate with your customers: If prices need to adjust, transparency goes a long way.
- Use Shopify tools or apps to dynamically display pricing that includes these new costs.
We’re Here to Help
Tariffs are a moving target, and it can be overwhelming, especially for smaller teams juggling inventory, marketing, and customer support. If you’re unsure where to start, or you want to make sure your Shopify store is ready for this new reality, reach out. We’re actively working with merchants to help streamline tariff tracking and adapt pricing strategies accordingly.
