If your brand’s supply chain touches China, your P&L just got nuked from both sides.
On Thursday, President Trump confirmed the U.S. is hitting Chinese goods with a 145% total tariff, marking the most aggressive trade stance in modern history. Just 24 hours later, China responded in kind—announcing a 125% retaliatory tariff on U.S. goods.
“If the U.S. insists on infringing upon China’s interests... China will fight to the end,” China’s finance ministry said Friday.
The result? A full-blown trade war. And it’s DTC brands—especially in categories like home, beauty, and wellness—that are feeling the squeeze first.
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The 145% tariff shock is now a two-way street
Here’s how the numbers break down:
U.S. tariffs on Chinese goods: 145% total
China’s retaliatory tariffs on U.S. goods: now 125%
De minimis rule for tariff-free small shipments: ends May 2
Freight rates: air prices up 9% this month alone
The U.S. hike includes a new 125% base tariff, layered on top of an earlier 20% fentanyl-related duty and existing category-specific rates. But China’s move makes it clear: no one’s blinking.
For brands like Jolie, which sells China-manufactured luxury showerheads, that means adding checkout fees like a “Trump liberation tariff.” Others, like Havenly, are already tacking on “import fees” and scrambling to update product pricing sitewide.
“There’s certainty around prices going up,” said Jolie CEO Ryan Babenzien. “The only uncertainty is how much and for how long.”
Amazon sellers are watching—then reacting
Third-party sellers drive over 60% of Amazon’s U.S. sales. Many are China-reliant. Some have already raised prices—20% of sellers using Helium 10, to be exact. Half say they’re holding fire until competitors move.
“These are superefficient markets,” said Juozas Kaziukėnas, CEO of Marketplace Pulse. “If everyone raises prices at once, it works. If you go solo, you lose.”
Brands with U.S.-based inventory are using the buffer to buy time. But the clock is ticking.
Air freight spikes as brands race the tariff clock
With tariffs now in effect and the de minimis loophole expiring May 2, brands are rushing to get goods in fast—even if it means eating higher shipping costs.
Result? Air freight costs are up 9% in the past month alone, per Freightos.
For brands like Havenly, which sells made-to-order sofas and chairs paid for upfront, the math is brutal. Orders placed last month are landing at double or triple the expected import cost.
“I’m sitting on two months of orders coming in at higher costs,” said CEO Lee Mayer. “That’s pretty brutal.”
The end of de minimis hits fast-fashion and startup darlings
The U.S. is officially closing the de minimis loophole on May 2. This rule allowed any order under $800 to enter the country tariff-free—perfect for platforms like Shein, Temu, and Quince.
Now? Those same shipments could be slapped with 100%+ tariffs, nuking their low-cost model.
Logistics teams are scrambling. Some are converting ocean shipments to air. Others are rushing product drops before the window closes.
Amazon’s Haul is evolving quickly
Amazon’s discount storefront Haul—originally a Temu clone shipping unbranded Chinese goods—has shifted tactics. It now includes U.S.-shipped name-brand products like Adidas and Gap, with faster delivery.
The goal? Make Haul less dependent on cross-border supply and turn it into a broader, Prime-style discount engine.
It’s a quiet but strategic hedge for when China’s pipelines break down.
Brands aren’t fleeing China (yet), but they’re nervous
Despite the tariff storm, most brands haven’t relocated manufacturing. It’s expensive. And nearby alternatives—Vietnam and Cambodia—are now facing tariffs of 46–49% themselves.
“It doesn’t make sense to jump ship just yet,” said Babenzien. “But if this sticks, we’ll look harder at Vietnam or Malaysia.”
In the meantime, brands are pausing purchase orders, experimenting with pricing, and hoping to avoid a customer backlash.
But in a market this volatile, with tariffs coming from both directions and inflation risks on the rise—there’s no safe playbook. Only speed, smart positioning, and a lot of recalculating.
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