Yesterday’s blanket tariff cut (145 % → 30 %) was a win - today’s Executive Order keeps the direct-to-consumer model alive.

Yesterday’s blanket tariff cuts (145 % → 30 %) were a win, but today’s Executive order will make even more people happy, especially those shipping direct-to-consumer.

In short, starting May 14, any parcel under USD 800 that leaves China or Hong Kong will see:
• Ad valorem duty slashed from 120 % to 54 %
• Flat fee frozen at USD 100 (the threatened jump to 200 bucks is off the table)

For many DTC stores, that’s the difference between thin profit and shuttering the site. 

Manu DTC brands I know had paused all ads in the last few weeks - today they’ll be firing their PPC campaigns back on.

Why the whiplash? The White House executive order realigns “small-value” rates with the broader 90-Day Pause deal, giving carriers a choice: charge the flat 100 or the new 54 % duty. 

How will this shape your next product launch or impact your strategy? Does DTC still remain a profitable model at these numbers? Drop your comments or questions below!