If you’re in the world of ecommerce, importing, exporting, or logistics, you’ve probably been inundated with tariffs headlines. Since early February 2025, the White House has been using tariffs not just as a tool for protecting domestic industries but also as leverage in broader policy debates, including border security. A new 10% tariff has already been applied on China Country of Origin goods, and similar measures have been floated for Canada, Mexico, and even global reciprocal tariffs. But what does that actually mean for merchants and third-party logistics providers (3PLs)? In short: higher costs, more red tape, and potential disruptions in how goods move across borders.
The biggest looming threat? Exemption from using de minimis entry—this little-known but crucial regulation allows low-value shipments (under $800) to enter the U.S. duty-free under Section 321. Let’s break down what you need to know, what steps to take now, and how to future-proof your business against these trade shifts.
What Are Tariffs?
The term tariff is generically used to refer to import duties, taxes, and other fees applied at the border at time of import. However, in the current context of dynamic trade actions, tariffs, such as Section 301 and 232, are additional and exceptional import fees applied in extraordinary instances. When applied, some products may be subject to additional fees in the form of a special tariff.
Governments use tariffs to control trade, protect domestic industries, or raise money. In relation to customs and cross-border shipping, tariffs are a tax placed on goods when they enter or leave a country. The current trade war tariffs are considered special tariffs with exceptional import fees applied in extraordinary circumstances. The U.S. only imposes duties, tariffs, and taxes (on limited scope of qualifying goods) on imports, (not exports), and these fees can be based on:
- Ad valorem – A type of import tax calculated as a percentage of the item's value rather than a fixed amount per unit. The term "ad valorem" is Latin for "according to value," which means the more expensive the item, the higher the tariff you’ll pay.
- Flat-fee tariffs - Also known as specific tariffs, are a set charge applied per unit of an imported good, regardless of its value. Unlike ad valorem tariffs (which are based on a percentage of the item's price), specific tariffs provide a predictable cost per item, making them easier to calculate.
- Compound tariffs - A combination of both ad valorem and flat-fee
Understanding De Minimis and Section 321
De minimis entry, under Section 321 of United States Tariff Act of 1930, allows low-value shipments to enter the U.S. without incurring duties or taxes. The de minimis threshold is the dollar value under which imported goods can enter the U.S. without duties, taxes, or formal customs clearance. In the U.S., this threshold is $800 per shipment (or combined shipments), per person, on one day—one of the highest in the world. This means that as long as your shipments are valued at $800 or less, it can clear customs quickly and cost much less to import. Major importers like Temu and Shein have famously used this to ship orders directly to buyers quickly and without high fees.
However, when enforcement of the special tariffs begins, importing products from a specified country will no longer be able to enter the US under Section 321 de minimis entry. Meaning that even low-value shipments will be subject to existing duties, taxes, and fees along with new tariffs and formal customs procedures. We have seen this begin with products that are manufactured in China, due to the February 4th 10% tariff on China. Though enforcement is currently paused, US Customs and Border Protection (CBP) has released guidance that all shipments that contain China Country of Origin goods will be subject to formal clearance.
What's Important for Merchants?
With tariffs changing rapidly—sometimes overnight—compliance is no longer optional; it’s essential. And this is not just true for importers. With retaliatory tariffs on the table from major trade partners like Canada, compliance is important for all international shipping. New trade policies can instantly impact your costs, shipping times, and even whether you can ship goods at all. Merchants who aren’t prepared risk delays, unexpected fees, and lost revenue.
The reality? Trying to manage compliance manually is a recipe for failure. Keeping up with shifting tariffs, customs regulations, and de minimis restrictions requires deep expertise and real-time adjustments. The merchants who will thrive are the ones who proactively integrate cross-border compliance into their logistics strategy—not the ones scrambling to fix issues after shipments get stuck in customs.
What's Important for 3PLs?
Third-party logistics providers serve as the backbone of supply chains, facilitating the movement of goods across borders. With the evolving tariff landscape, 3PLs must adapt to changes in customs procedures and ensure compliance with new regulations. The possible alteration of de minimis thresholds means that more shipments may require formal customs clearance, potentially leading to increased operational complexities and delays.
For 3PLs, merchants will rely on your logistics expertise to ensure cross-border success. However, a lot of the compliance information like accurate country of origin and customs descriptions must come directly from the merchant. Integrating your WMS with cross-border solutions that can dynamically classify allows 3PLs to ship goods confidently and focus on the operations at hand, not what is happening at the border.
One key solution? Delivered Duty Paid (DDP) shipping, a shipping method where the seller or shipper takes full responsibility for paying all import duties, taxes, and customs fees upfront, ensuring a seamless delivery experience with no surprise costs for the buyer. By offering DDP, 3PLs can ensure that duties and taxes are calculated and paid upfront, preventing unexpected fees, faster customs clearance, and a smoother customer experience. Without DDP, shipments risk delays, refusals, or surprise costs for customers—hurting merchant relationships and delivery reliability.
Immediate Tactical Steps to Take
- Stay Informed: Regularly monitor official announcements from trade authorities to keep abreast of tariff changes and related policies.
- Invest in Technology: Work with trusted cross-border partners like FlavorCloud, which guarantees duties, taxes, fees, and shipping costs and owns the full liability for moving freight (parcels through pallets) around the world—anywhere to anywhere.
- Review Pricing Strategies: Analyze how increased import costs due to tariffs will affect pricing. Communicate transparently with customers about potential price adjustments.
- Enhance Customs Compliance: Ensure all documentation is accurate and up-to-date to prevent delays.
Long-Term Strategic Steps to Take
- Assess Supply Chains: Evaluate current supply chains to identify dependencies on countries affected by new tariffs. Consider diversifying suppliers to mitigate risks.
- Strengthen Supplier Relationships: Collaborate closely with suppliers to develop contingency plans and negotiate better terms that can cushion the impact of tariffs.
- Advocate for Policy Engagement: Engage with industry associations to stay informed about policy developments and participate in advocacy efforts that represent the interests of merchants and 3PLs.
The shifting tariff environment requires proactive measures from both merchants and 3PLs. By staying informed and adapting strategies accordingly, businesses can navigate these challenges and continue to thrive in the global marketplace.
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This blog was authored by Hannah Storrs from our valued partner, FlavorCloud. Hannah is a Sr. Content Strategist with a passion for making complex topics in ecommerce and logistics accessible and approachable. She develops insightful resources, helping businesses and individuals navigate the ever-evolving world of global trade.
About FlavorCloud: FlavorCloud enables merchants and 3PL partners to offer global, guaranteed delivery promises. Abstracting all the complexity of moving products across borders with their powerful network – anywhere to anywhere – FlavorCloud takes on the risk of customs clearance, carrier disruption, and global trade compliance off the merchant and consumer’s shoulders. From the best-in-class rates at checkout through last mile (and returns), FlavorCloud solves the challenging parts of the end-to-end complex commerce experience.
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