Is Dropshipping Dead After Trump’s New Tariffs? (What To Do in 2025)

If you’re running a dropshipping store or thinking about starting one, you’ve probably heard about the new tariffs hitting Chinese imports. These changes are real, and they’re affecting everything from product pricing to shipping times. But here’s the truth: dropshipping isn’t dead. It’s just changing. In this guide, I’ll explain what’s going on, what it means for your business, and how you can pivot right now to stay profitable.

What Are the New Tariffs?

As of 2025, the U.S. government has increased tariffs on a range of Chinese imports, with some categories seeing duties as high as 145%, up from the previously announced 125%. Even more impactful? The de minimis exemption, which allowed packages under $800 to enter the U.S. duty-free, has now been eliminated for Chinese goods.

What does that mean for dropshippers?

• Increased product costs from Chinese suppliers
• Longer shipping times due to customs delays
• Reduced profit margins unless you adapt quickly
• Customer dissatisfaction from delayed orders and higher prices

It’s a major shift, especially for dropshippers relying on AliExpress or other China-based platforms. But it’s not the end.

 

Strategy #1: Shift to High-Ticket Products

If your store sells low-ticket items with thin profit margins, tariffs will eat those margins alive. Now’s the time to pivot. You can focus on:

• Products over $100
• Niche items with less price sensitivity
• Solutions-focused products (like ergonomic chairs, home gym gear, and tech accessories)

Higher-ticket products give you more room to absorb increased shipping and import costs while still turning a profit.

 

Strategy #2: Start Bundling Products

Bundles are one of the easiest ways to increase your average order value and justify shipping costs.

Examples:

• A pet grooming kit instead of a single brush
• A 3-in-1 fitness accessory set
• Kitchen sets with multiple utensils instead of one

Bundling also improves customer experience by offering more value, making your store look more premium.

 

Strategy #3: Diversify Your Suppliers

Don’t rely on China alone. With tariffs targeting Chinese goods specifically, many sellers are now sourcing from other regions. Here are the alternative supplier regions to explore:

• Vietnam
• India
• Mexico
• United States (for faster shipping)
• European Union

Platforms like Spocket give you access to suppliers in these countries. The goal is to reduce your exposure to tariffs while offering quality products with reasonable shipping times.

 

Strategy #4: Explore International Markets

The U.S. is not your only customer base. You can expand your market and include these countries as your new target market: 

• Canada
• Australia
• Germany
• United Kingdom

These new tariffs all have less impact on them and still present strong e-commerce demand. By adjusting your ad targeting and store settings, you can start testing these markets quickly with tools like Shopify Markets or localized shipping apps.

 

Strategy #5: Use Price Monitoring Tools to Stay Profitable

Your profit margins vanish if your supplier raises prices overnight and you’re not tracking it.

Tools like AutoDS can help:

• Automatically monitor supplier prices
• Update your product pricing in real-time
• Protect your margins without you lifting a finger

 

You can also set rules like “Pause product if profit drops below 15%” to avoid unprofitable sales.

 

Watch our YouTube video for a full strategy on dropshipping after Trump’s new tariffs.

 

Is Dropshipping Dead?

Not even close. Dropshipping is evolving. Yes, the low-effort, low-margin, AliExpress-only model is struggling—but sellers who adapt are still winning. If you’re willing to shift your strategy, optimize your supply chain, and focus on long-term brand building, there’s more opportunity than ever. This is what separates amateurs from real business owners.

 

Final Thoughts: Adapt or Fall Behind

Tariffs are real. They’re hitting hard. But every change in the e-commerce space brings opportunity if you move fast and smart.

• Focus on high-ticket products
• Start bundling
• Diversify your suppliers
• Go global
• Use tools to track profit and pricing

If you do that, you’ll not only survive this shift. You’ll grow through it.