What 3PLs and Merchants Need to Know About Tariffs

What 3PLs and Merchants Need to Know About Tariffs

📑 Table of Contents

1. Introduction: Why Everyone’s Talking About Tariffs Again
2. What Are Tariffs and Why Are They So Disruptive?
3. Understanding Section 321 and De Minimis Entry
4. What Merchants Need to Know Right Now
5. What 3PLs Must Prepare For
6. Why DDP (Delivered Duty Paid) Is a Game-Changer
7. Immediate Action Plan for Merchants & 3PLs
8. How Storfox Helps You Stay Compliant and Cost-Efficient
9. Final Thoughts: Stay Proactive, Not Reactive

1. Introduction: Why Everyone’s Talking About Tariffs Again

If you're in ecommerce, logistics, or cross-border trade, you’ve likely seen the headlines: tariffs are back in the spotlight, and they’re bringing serious implications. Since early 2025, the U.S. government has introduced new tariffs on foreign goods—many of which directly affect everyday imports.

From a 10% tariff on Chinese-origin products to stricter scrutiny under Section 321 de minimis rules, businesses must rethink how they handle global sourcing, fulfillment, and delivery.

2. What Are Tariffs and Why Are They So Disruptive?

Tariffs are taxes imposed on imported goods. They're designed to protect local industries, but they can also disrupt international trade, increase costs, and cause delays.

Common types of tariffs:

• Ad Valorem Tariff: This type of tariff is calculated as a percentage of the total value of the goods being imported. For example, if a country imposes a 10% ad valorem tariff and the product is valued at $1,000, the importer would pay $100 in tariff charges. It's one of the most common types of tariffs used globally because it scales proportionally with the product’s price.
• Specific Tariff: Unlike ad valorem tariffs, a specific tariff is a fixed fee applied to each unit of goods, regardless of its value. For instance, a country might charge $5 for every unit of a certain item imported. This method offers predictability but doesn’t account for price fluctuations in the product's market value.
• Compound Tariff: A compound tariff blends both the ad valorem and specific tariffs. Importers are required to pay a fixed amount per unit plus a percentage of the item's value. This type of tariff offers governments a way to protect local industries while also generating more revenue from high-value items.

Tariff hikes can impact everything from raw materials to final-mile delivery, complicating logistics operations for 3PLs and inflating landed costs for merchants. Discover how Storfox can help you stay compliant, reduce costs, and scale faster in 2025. Talk to our team now.

3. Understanding Section 321 and De Minimis Entry

The Section 321 de minimis rule allows goods under $800 to enter the U.S. without duties or customs formalities. It’s a powerful cost-saver for small ecommerce shipments—but this advantage is fading.

With new enforcement in 2025, de minimis benefits may no longer apply to certain countries of origin, particularly those under scrutiny. That means even low-value items could soon require full customs clearance and duties, significantly slowing down last-mile delivery.

4. What Merchants Need to Know Right Now

Tariff changes aren’t gradual anymore—they can be immediate. Merchants must now operate with real-time awareness and agility. Here's what to prioritize:

• Rising Landed Costs Impacting Profit Margins: Increased tariffs and customs fees lead to higher landed costs, which directly reduce the profit margins for merchants and 3PL providers. Managing these escalating expenses is crucial to maintaining competitive pricing and profitability.
• Unexpected Shipping Delays from Stricter Customs Enforcement: Tighter customs inspections and regulations often result in unforeseen delays during shipping. These hold-ups can disrupt supply chains, delay order fulfillment, and affect overall delivery timelines, causing operational challenges for logistics providers.
• Customer Dissatisfaction Due to Hidden Fees and Extended Delivery Times: When tariffs and customs processes add unexpected charges or prolong shipping times, customers may feel frustrated and lose trust in the brand. Transparency in pricing and delivery expectations is essential to maintain customer satisfaction and loyalty.

The key to staying ahead? Centralize and digitize your customs compliance, tax calculations, and shipment classification using a smart logistics platform. Let Storfox handle the complexity—book a free demo today and see how smart compliance meets seamless fulfillment.

5. What 3PLs Must Prepare For

For 3PLs, tariff volatility means extra pressure across operations. Many clients will now depend on their 3PLs not just for delivery—but also for:

• Accurate Tariff Classification and Duty Estimates: Properly classifying goods according to tariff codes and accurately estimating duties is essential for smooth customs clearance. This helps merchants and 3PLs avoid costly errors, reduce delays, and plan costs more effectively.
• Streamlined Pre-Cleared Documentation Workflows: Efficient management of customs paperwork before shipment ensures faster processing at border checkpoints. Pre-cleared documentation workflows minimize the risk of hold-ups and help shipments move swiftly through customs.
• Real-Time Cross-Border Visibility: Having real-time tracking and visibility of shipments across borders empowers logistics providers to proactively manage delays, communicate updates, and optimize delivery routes, improving overall supply chain efficiency and customer satisfaction.

Without the right systems in place, these added responsibilities can overwhelm 3PLs and compromise service levels.

6. (Delivered Duty Paid) Is a Game-Changer

Delivered Duty Paid (DDP) shipping transfers all customs duties, fees, and taxes to the seller before delivery, making the experience seamless for customers.

With DDP, merchants and 3PLs can:

• Avoid Customs Delays: Efficient tariff management and proper documentation help shipments clear customs quickly, preventing costly hold-ups and ensuring timely delivery.
• Eliminate Surprise Fees for Customers: Transparent tariff and duty calculations reduce unexpected charges, building trust and improving the overall customer experience.
• Improve Delivery Times: Streamlined customs processes and accurate tariff handling contribute to faster shipments, helping meet customer expectations for on-time delivery.
• Increase First-Attempt Delivery Success: By minimizing delays and ensuring clear communication, logistics providers can boost the rate of successful deliveries on the first attempt, enhancing operational efficiency.

Discover how Storfox can help you stay compliant, reduce costs, and scale faster in 2025. Talk to our team now.

7. Immediate Action Plan for Merchants & 3PLs

Here’s how you can adapt quickly:

• Track Policy Changes in Real-Time — Continuously monitor tariff updates by country of origin and product category to stay compliant and avoid unexpected charges.
• Digitize Documentation Processes — Automate tasks like HS code classification, invoicing, and customs declarations to reduce errors and speed up cross-border shipments.
• Offer Delivered Duty Paid (DDP) Shipping — Implement end-to-end delivery workflows that manage duties upfront, providing customers with a seamless and transparent checkout experience.
• Reprice Products and Shipping Thresholds — Regularly review and adjust SKU prices and shipping costs to reflect new tariff structures and maintain healthy profit margins.
• Educate Your Team Across Departments — Ensure that operations, finance, and customer service teams understand tariff impacts and work together to optimize compliance and customer satisfaction.

8. How Storfox Helps You Stay Compliant and Cost-Efficient

Storfox equips 3PLs and ecommerce merchants with all the tools needed to navigate tariffs, customs compliance, and cross-border regulations effortlessly.

With Storfox, you can:

• Instantly calculate duties and taxes based on real-time HS code data
• Automate DDP shipping workflows to avoid customer friction
• Sync customs documentation with inventory and shipping systems
• Monitor tariff exposure by supplier, origin country, or SKU
• Stay audit-ready with complete customs records and tracking

Whether you're managing global inventory or scaling into new markets, Storfox simplifies tariff management while improving speed and accuracy across your supply chain. Let Storfox handle the complexity—book a free demo today and see how smart compliance meets seamless fulfillment.

9. Final Thoughts: Stay Proactive, Not Reactive

Tariffs are no longer background noise—they’re a core business challenge. Merchants and 3PLs who take a passive approach will struggle with increasing costs, slower fulfillment, and regulatory risks.

Storfox gives you the insight and control to stay ahead of disruptions, optimize fulfillment, and deliver great customer experiences—even in a turbulent trade environment.