On May 12, 2025, the U.S. and China announced a 90-day tariff suspension. U.S. duties on Chinese imports were reduced from as high as 145% to 30%, and reciprocal Chinese tariffs were lowered to 10%. For DTC e-commerce brands that source products from China, this is not just a temporary price break—it’s a moment of strategic opportunity that may close quickly in this long-running trade war.

Why This Matters for DTC Brands

The tariff relief applies only to landed goods—products that physically arrive in the U.S. during the 90-day window. That creates a simple rule: you cannot afford to wait!

Manufacturers are bracing for a surge in orders as brands scramble to exploit the 90-day window. We expect the surge will create delays, tighter capacity, and longer lead times. Waiting a few weeks to “see how things unfold” could mean missing the boat, figuratively and literally.

Uncertainty After 90 Days Is the Only Certainty

There is no guarantee that tariffs will remain low—or even stable—after this agreement expires. In fact, if recent history is any indication, the odds lean the other way. The U.S.–China trade relationship has been defined by volatility and sudden reversals. If you’re hoping for more clarity later, consider this: you have more certainty today than you’re likely to have again this year.

That makes this moment a rare window of predictability at a lower tariff cost for inventory planning, especially ahead of critical Q4 and holiday demand.

Why This Moment Matters More Than You Think

Beyond the direct cost of tariffs, two subtle but powerful shifts are making this window even more valuable:

1. Manufacturing Delays Are Coming Fast. Demand compression during the tariff standoff created pent-up production volume. Now, with the suspension in effect, manufacturers are being flooded with new orders. Capacity is finite. If you're not already in line, you're falling behind.

2. Shipping Delays Are Concerning. You will not only be competing for manufacturing capacity, but also freight capacity. To avoid a 2020/2021 supply chain issue where timelines from factory to US distribution were extended tremendously, it’s critical to move now.

3. Dropshipping Retreat = Ad Efficiency Gains. Major dropshippers like Temu, once aggressive spenders in U.S. ad markets, have scaled back sharply or exited altogether. This has led to less competitive digital ad auctions—meaning brands are seeing improved CACs and cheaper CPMs. Fewer bulk-shipped competitors. More efficient media buying. It’s a rare tailwind for your marketing spend

Move While the Window Is Open

The current tariff suspension is a convergence of rare advantages: known rates, limited-time predictability, and a more favorable ad environment. Delaying could cost you not just margin—but inventory, reach, and customer growth when it matters most.

Clearco Stays Steadfast for Its Customers

Many working capital providers have pulled back exposure to China, with some revenue-based finance peers expressly ceasing to fund customers who source from China. Clearco never has. We’ve consistently supported our customers through volatility—and we’re here for you now.

Already a Clearco customer? 

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