Latest News On Trump Tariff on China
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90-Day Tariff Pause: On May 12, 2025, the U.S. and China announced a 90-day pause in tariff escalations. The U.S. reduced tariffs on Chinese goods from 145% to 30%, and China lowered its tariffs on U.S. goods from 125% to 30%. This temporary truce aims to ease tensions and facilitate further negotiations.
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Tariff Reductions: As part of the 90-day pause, the U.S. lowered the reciprocal tariff rate on Chinese goods from 145% to 30%. Similarly, China reduced its tariffs on U.S. goods from 125% to 30%.
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Sector-Specific Tariffs: The U.S. is considering additional duties on goods such as semiconductors, pharmaceuticals, and possibly critical minerals. These tariffs could range from 25% to 100%.
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De Minimis Exemption Elimination: Effective May 2, 2025, the U.S. eliminated the de minimis duty exemption for Chinese-origin goods valued under $800. This means all applicable tariffs and duties now apply to these items. For goods sent through the international postal network, a 90% tariff or a $75 flat fee per item will apply until May 31, 2025, after which the flat fee will increase to $200 per item starting June 1, 2025.
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Logistics Challenges: Rerouting products or raw materials through other nations like Vietnam or Malaysia has become costly, with up to 25–35% surcharges on redirected POD goods. This adds further strain on supply chains.
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China’s Retaliation: In retaliation to the U.S. tariff increases, China raised its tariffs on U.S. goods from 34% to 125%. Additionally, China halted exports of rare earth magnets and critical minerals to the U.S. and filed a complaint with the World Trade Organization (WTO) against U.S. tariff actions.
Impact on Businesses and Consumers
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Increased Costs: The higher tariffs have significantly increased the cost of goods for both businesses and consumers. For POD (Print on Demand) products like custom cards, puzzles, and apparel, the combined tariffs can make these products more expensive and less competitive in the market.
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Supply Chain Disruptions: The elimination of the de minimis exemption and the increase in tariffs have led to significant disruptions in the supply chain, particularly for small and medium-sized businesses that rely on low-cost Chinese imports.
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Market Uncertainty: The ongoing trade war has created uncertainty in the market, making it difficult for businesses to plan and budget for the future. This uncertainty can lead to reduced investment and slower economic growth.
What’s Next?
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Monitoring Developments: Businesses should continue to monitor the evolving tariff situation and be prepared to adjust their strategies as needed. The 90-day pause provides a window of opportunity to reassess supply chain strategies and explore alternative sourcing options.
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Preparing for Potential Escalation: While the 90-day pause offers some relief, businesses should remain prepared for the possibility of further tariff increases or other trade restrictions if negotiations fail to yield a more permanent solution.
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Leveraging Exemptions and Exceptions: Some products may be exempt from the additional tariffs. Businesses should review the specific details of the tariff announcements to identify any applicable exemptions or exceptions that could help mitigate the impact.
QPMN's Commitment to Partners - 10% Increase only
In light of the recent tariff increases on Chinese imports, we want to reassure our community that we’re committed to minimizing the impact on your business. While many in the industry are facing significant cost surges, we will be absorbing the majority of the additional tariff-related expenses. To maintain service quality and sustainability, we’re implementing a modest 10% price adjustment on U.S.-bound orders. This approach allows us to continue offering competitive pricing while navigating the challenges of the current trade environment.
Introduction
Are you a Print on Demand (POD) seller targeting the U.S. market? Then this is essential reading.
Trump’s tariffs on Chinese imports show no signs of easing. What was once a steep 90% hike is now projected to soar to an astonishing 245%—a move set to disrupt global supply chains and directly impact the POD industry.
As you may expect, a trade war between the world’s two largest economies rattles everyone, and particularly impacted e-ecommerce’s and print on demand (POD) industries that rely on affordable Chinese goods.
The latest increase of 100% isn’t applied uniformly across all goods and only on some Chinese Goods. For small businesses and POD sellers the problematic issue lies in the tariff for small value goods (defined as below $800 USD).
Initially exempt due to the de minimis exemption, the new rate will be 120% of the product value or $100 fixed cost on May 2nd and rising to $200 per item after June 1.
It’s no surprise that many POD sellers are alarmed and seeking ways to protect their businesses. In this blog, we’ll break down what these escalating tariffs mean for you—and more importantly, how QPMN, your trusted print on demand partner, is here to support you with solutions and strategies to navigate the challenges ahead.
Background on Trump’s Tariffs
Why are there suddenly so many tariffs and what do they mean? Tariffs are taxes imposed on imported goods, designed to make foreign products more expensive and less competitive with domestic ones.
The current situation is that The U.S. imports way more than Chinese goods from China than it exported leading to a trade imbalance called a deficit. By imposing these tariffs, Trump aims to boost American manufacturing and encourage companies to source goods domestically or from alternative suppliers.
Timeline of Trump’s Tariffs
- Initial Tariffs (10% to 20%):
- Date: July 6, 2018
- Details: The Trump administration imposed an initial 10% tariff on $34 billion worth of Chinese goods, marking the start of the trade war. This was later increased to 20% as tensions escalated.
- Source: Newsweek
- Section 301 Tariffs (Up to 100%):
- Date: September 1, 2019
- Details: Under Section 301 of the Trade Act, tariffs of up to 100% were imposed on specific Chinese goods, including electric vehicles and syringes. These tariffs were carried forward into the Biden administration.
- Source: USA Today
- Additional Tariffs (125%):
- Date: April 2, 2025
- Details: Trump introduced a new set of tariffs, adding 125% on top of existing rates. These targeted what the U.S. deemed unfair trade practices by China.
- Source: Times of India
- Fentanyl-Related Tariff (20%):
- Date: April 15, 2025
- Details: A 20% tariff was specifically tied to China's alleged role in fentanyl trafficking, further increasing the cumulative tariff rates.
- Source: Times of India
- Cumulative Tariff (245%):
- Date: April 16, 2025
- Details: The cumulative effect of all these tariffs, including the baseline, Section 301, additional tariffs, and the fentanyl-related tariff, resulted in some Chinese goods facing a total tariff rate of 245%.
- Source: Newsweek, USA Today, Times of India
- May 2, 2025: The duty-free de minimis treatment for low-value goods from China and Hong Kong will be eliminated.
How Trump’s Tariffs Are Reshaping the POD Landscape
For U.S.-based POD sellers and international businesses targeting American consumers, this policy greatly affects their costs, supply chains, and competitiveness.
Let’s break down the fallout and explore strategies to adapt;
How are Trump’s Tariffs Calculated?
For U.S.-Based POD Sellers: Rising Costs and Supply Chain Squeezes
Turbocharged Production Costs Tariffs on Chinese raw materials, blank apparel, and printing equipment have become a financial kick for POD businesses. The new 104% tariff stacks atop existing duties like the 34% reciprocal tariff and 10% universal levy, but the June 1 update adds fuel to the fire:- Small-value shipments now face a 120% tariff spike (up from 90%) **or a $200 fixed fee double the previous $100 fixed fee (after June 1), a brutal hit for low-volume sellers testing new designs.
- Blank apparel: With over 80% of U.S.-sold apparel imported, tariffs of 120% mean a basic 2 T−shirt could now cost $4.40 ($2 × 120% = $2 × 1.2 = $2.40 and then add to original amount: $2 + $2.40 = $4.40).
- Printing machinery: Chinese-made DTG printers hit with 90% tariffs could see prices leap from 10,000 to 19,000 overnight, forcing sellers to absorb costs or delay upgrades.Supply Chain Bottlenecks
The elimination of the de minimis exemption has gone nuclear. Post-June 1, even simple fabric shipments face a 90% increase. Logistics analysts warn:
- Retaliatory Tariffs: China’s 34% tariffs on U.S. cotton now squeeze domestic suppliers too, potentially creating shortages.
For International Sellers Targeting the U.S.: A Competitive Minefield
International POD sellers now face a Sophie’s Choice: swallow 120% tariffs or bleed profits with up to $200 fees. For example:- A Temu seller offering a $15 printed hoodie could see costs rise a further $18 after tariffs, making it harder to compete with U.S.-based rivals.
- Platforms like AliExpress and Shein, which rely on direct-to-consumer shipments from China, face added pressure to shift inventory to U.S. warehouses — a costly pivot for small sellers.
- China’s 34% retaliatory tariffs on U.S. goods like cotton and machinery further strain cross-border trade, while U.S. consumers grow increasingly concerned with price hikes. A Yale study estimates tariffs could raise household costs by $3,000 annually, pushing buyers toward cheaper, non-tariffed alternatives.
Adapting to the New Normal: Strategies for POD Sellers
Diversify Target Country
It’s important to note that increasing costs of doing business mostly isolated to the U.S. Thankfully the advantages with the POD business model is that they offer Global fulfillment meaning that with some adjustments, sellers could set their sights on countries with less or no increased tariffs like Canada, Australia and Europe.
Emerging Key POD Markets
Canada’s print-on-demand market is a lucrative opportunity, poised to grow at an impressive compound annual growth rate (CAGR) of 27.6%, reaching $2.28 billion by 2030. Meanwhile, Europe is set to outpace many regions with a CAGR of 26.3%, boasting a projected market value of $8.25 billion by 2030 and Australia is expected to reach a projected $195.2 million by 2030, which is a compound growth of 12.5%.
Not only does it make for a smart tactic to target counties to avoid the hefty U.S. tariffs, but since two regions naturally speak English, with the last one being more than capable of communicating in English, it reduces the need to make larger changes and reduces the time to retarget.
Business Strategies for POD sellers
Perhaps the single biggest advantage for POD sellers is their personalization on the products which can attract a premium price. Take a T-shirt for example, you are not selling the product, it’s your design you add on that people are buying and your designs are highly valuable. Therefore, you could;- Optimize Pricing: Offer tips on adjusting pricing strategies to account for increased costs without alienating customers.
- Focus on Branding: Stress the importance of creating unique, high-quality designs to stand out in competitive markets.
- Expand Product offerings: Locate other POD suppliers that offer new products and services to sell to new regions.
How QPMN Is Supporting Sellers Through Tariff Challenges
At QPMN, we understand the challenges posed by the rising tariffs, especially for U.S.-based and international POD sellers targeting the U.S. market. To help you stay competitive and minimize disruptions, we are introducing the following measures:
Absorbing Costs for Sellers:
- QPMN will absorb a portion of the increased costs caused by tariffs on raw materials and shipping. This will help alleviate the immediate financial impact on your business.
Adjusted Pricing for the U.S. Market:
- To maintain profitability while accounting for the tariff increase, QPMN will implement a 20% price adjustment (based on the product cost and shipping fees) for all orders with destinations in the U.S. This adjustment ensures stable operations while maintaining fair pricing for our sellers.
Flexible Fulfillment Options:
- By leveraging our global warehouse network and expanding fulfillment options to markets like Canada, Europe, and Australia, we are helping sellers diversify their target markets and avoid U.S. tariff bottlenecks.
Enhanced Cost Efficiency:
- With our FlexiBulk Saving Program and AI-powered POD Design Tool, sellers can streamline production, reduce waste, and optimize cost structures.
How This Helps You:
By partnering with QPMN, you can focus on selling without worrying about navigating the complex tariff landscape alone. Our goal is to make your business resilient, profitable, and scalable in any market condition.
The Future is Uncertain—But Opportunity Awaits for Those Who Act Fast
With the U.S.–China trade war escalating, the exact shape of the future is uncertain. What is clear, however, is that the Print on Demand (POD) industry is poised for a shake-up—especially in terms of cost structures and dependence on global supply chains.
The Future is Uncertain—But Opportunity Awaits for Those Who Act Fast
Worried About Tariffs? Let’s Talk.
If you're a POD seller feeling uncertain about how these rising tariffs might affect your business, you're not alone—and you don’t have to navigate this alone either. At QPMN, we specialize in helping sellers adapt to changing market conditions. Whether it’s diversifying fulfillment options, reducing risk, or finding more cost-effective solutions, we're here to support the continued success of your POD business—despite the challenges. Reach out to us today to learn how we can help you maintain stability, reduce costs, and keep your business thriving in this new tariff landscape.
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