New Tariffs on China: What It Means for US Creators & US-Based Dropshippers

Will the 2025 Tariffs Help or Hurt U.S.-Made Products?

At first glance, higher tariffs on Chinese imports should benefit U.S. businesses—especially those selling handmade, print-on-demand, or domestically manufactured products. With imported goods getting more expensive, customers may be more willing to pay for U.S.-made alternatives.

But here’s the catch: Many U.S.-based businesses still rely on China in some way.

Even if your final product is made in America, ask yourself:

• Where do your materials come from? If you use Chinese-sourced fabrics, wood, metal, or electronic components, expect higher costs.
• Do your POD or dropshipping suppliers import blank products? Many U.S.-based POD providers and domestic dropshippers source blank apparel, mugs, and other raw goods from China before printing or customizing them in the U.S.
• Will your shipping costs change? If your fulfillment provider relies on Chinese-made packaging or supply chain logistics, they might raise prices to compensate for tariff-related costs.

How the 2025 Tariffs Could Impact U.S.-Based Sellers

1. Higher Material Costs for Handmade and U.S.-Manufactured Products

Even if you make your own products in the U.S., many raw materials are still imported from China.

Examples of affected industries:

• Jewelry makers – Metals, gemstones, and findings often come from China.
• Clothing brands – Cotton may be American, but many fabrics, buttons, zippers, and dyes are sourced overseas.
• Electronics and gadget creators – Even if you assemble your products in the U.S., many internal components (like chips and batteries) come from China.
• Packaging and shipping materials – Many bubble mailers, polybags, and boxes are Chinese imports.

If you make your own products, expect to pay more for supplies and consider raising prices accordingly.

2. Print-on-Demand Services May Raise Prices

POD providers like Printful, Printify, and Apliiq often source blank apparel and other customizable products from China or other Asian countries. Even if they print and ship from U.S. facilities, the base cost of blank products could increase, which means higher costs for you as a seller.

Possible impacts:

• T-shirts, hoodies, and tote bags could become more expensive.
• Mugs, phone cases, and home decor items could see price hikes.
• Fulfillment times might slow down if blank products are delayed at customs.

If your POD provider increases base prices, you’ll either have to eat the cost or pass it on to your customers—so be prepared to adjust pricing and profit margins.

3. Domestic Dropshipping Isn’t Completely Safe Either

If you use U.S.-based dropshippers, you may assume you’re totally unaffected—but that’s not necessarily true. Many domestic dropshippers still import inventory from China before storing it in U.S. warehouses.

For example:

• A U.S.-based furniture dropshipper might sell American-assembled chairs—but the screws and cushions may be imported from China.
• A pet products dropshipping supplier may import toys and accessories in bulk before shipping from a domestic warehouse.
• A beauty brand manfacturing skincare products could still be reliant on Chinese-sourced packaging.

If these suppliers face higher costs, they’ll likely pass those increases down to you.

How to Protect Your U.S.-Based Business from Tariff Fallout

Even if your business is based in the U.S., you still need to prepare for price shifts and supply chain issues. Here’s what you can do to stay ahead of these changes:

1. Audit Your Supply Chain

Take a hard look at where your materials, products, and packaging come from. If you see any Chinese imports in your supply chain, assume those costs could rise.

• Ask suppliers for full transparency on sourcing.
• See if there are alternative suppliers in the U.S., Mexico, or other countries.
• Consider buying materials in bulk before prices go up further.

2. Adjust Pricing Strategically

If your costs go up, you might need to raise your prices—but don’t just hike them up without a plan.

• Consider bundling products to increase perceived value.
• Offer loyalty discounts or free shipping thresholds to encourage larger orders.
• If you have a premium or handmade product, highlight the quality difference to justify a higher price.

3. Keep an Eye on Your POD and Dropshipping Providers

If you rely on Printful, Printify, SPOD, or other U.S.-based fulfillment companies, watch for updates on price changes. If they raise costs, compare with other POD services to see if there are better alternatives.

• Some POD providers offer USA-made products—check if you can switch to fully domestic options.
• Consider stocking bestsellers yourself instead of relying 100% on print-on-demand.

4. Prepare for Possible Shipping Delays

Even if you only sell in the U.S., higher tariffs mean more customs checks, more delays at ports, and potential slowdowns in supply chains.

• Be transparent with customers about possible shipping delays.
• If your supplier faces delays, look for backup options so you don’t go out of stock.
• Offer pre-orders or waitlists to manage customer expectations.

Final Thoughts: Is This a Win or a Challenge for U.S.-Based Sellers?

The 2025 tariffs on Chinese imports could be a double-edged sword for U.S. businesses.

On one hand, more customers may turn to American-made products as Chinese goods become more expensive. This could be a huge advantage for handmade sellers, POD brands, and domestic manufacturers.

On the other hand, if you rely on imported materials, blanks, or packaging from China, your costs could go up too. Even U.S.-based dropshipping and fulfillment services may pass price hikes down to merchants.

The key to surviving this shift? Adaptability.

• Know your supply chain.
• Monitor pricing changes.
• Stay transparent with customers.

For U.S. businesses, this is an opportunity and a challenge—and those who stay ahead of the curve will come out on top.

Are you a U.S.-based seller, POD brand, or handmade business owner? How are these tariffs affecting you? Drop a comment below.