Running an online business today means looking beyond borders. Whether you’re shipping handcrafted items across the ocean or sourcing unique inventory from overseas, international trade can be a powerful growth driver. But it can also be a minefield.
Tariffs, customs duties, and international shipping regulations are constantly changing and recently, they’ve shifted more dramatically than ever. For Shopify merchants, especially those new to selling globally, these changes can feel overwhelming.
The good news? With the right tools and a thoughtful approach, you can navigate this complex space confidently. In this guide, we’ll break down what you need to know about international tariffs in 2024, what Shopify offers to help you manage them, and how to create seamless cross-border shopping experiences for your customers.
What’s Changing: A New Era of Tariffs
As of April 2024, the U.S. introduced a baseline 10% tariff on all imports. This policy, which went into effect on April 5, affects nearly every international shipment entering the country.
But it doesn’t stop there:
- Products from China are now subject to a steep 145% tariff, placing substantial pressure on merchants sourcing from Chinese suppliers.
- The de minimis rule, which previously allowed imports under $800 to enter duty-free, has been eliminated for China. Beginning May 2, all shipments from China—regardless of value—face a 120% tariff or $100 per item, rising to $200 per item on June 2.
- Imports from Canada and Mexico remain tariff-free under the USMCA agreement, but only if they meet the agreement’s compliance standards. Non-compliant goods are hit with a 25% tariff.
These changes are more than numbers on a spreadsheet. They affect your product pricing, your profit margins, and how competitive your store appears to shoppers around the world.
Step 1: Know What You’re Shipping – Start With HS Codes
Every product you import or export is identified by a Harmonized System (HS) code. This code tells customs officials what your product is and how it should be taxed.
Getting the HS code wrong—or skipping it entirely—can result in delays, incorrect duties, and avoidable penalties.
Shopify offers a helpful integration called Tariff Guide that helps you:
- Search for your product’s HS code by entering a simple description
- View suggested classifications and compare duty rates
- Select the code that best matches your item and shipping country
Once you find the correct code, add it—along with the country of origin—to your Shopify admin. This ensures accurate tariff calculations and helps prevent border delays.
You can enter these fields manually on each product page or import them in bulk using a CSV file.
Step 2: Choose a Duties Strategy – DAP vs. DDP
When selling internationally, there are two ways to handle duties and taxes:
1. Delivered At Place (DAP)
- Your customer pays duties and taxes when the package arrives.
- Pros: Simpler for you as a seller, no upfront duties collection.
- Cons: Surprise fees may frustrate customers and delay delivery.
2. Delivered Duty Paid (DDP)
- You (the seller) collect duties and taxes at checkout, using Shopify tools.
- Pros: Transparent, no surprise fees for customers, fewer delivery issues.
- Cons: Requires calculating fees ahead of time and purchasing DDP labels.
Shopify supports both models, but DDP is preferred if your goal is to build trust and offer a premium customer experience.
Step 3: Automate Duties Collection With Shopify Tools
Within your Shopify admin, you can enable automatic duties and import tax collection. Here’s how to set it up:
- Go to Settings > Taxes and duties
- Turn on duties and import tax collection for the countries you serve
- Ensure each product has the correct HS code and country of origin
From there, you can either:
- Show duties as a separate line item at checkout, or
- Use duty-inclusive pricing, where the product price includes all fees
Either way, customers won’t face any surprise costs at delivery, which can help reduce abandoned carts and increase international conversion rates.
Step 4: Ship Smart – Use DDP Shipping Labels
If you’re collecting duties at checkout, be sure to use Delivered Duty Paid (DDP) shipping labels. This ensures your customer isn’t charged again at delivery.
Right now, DDP labels are available through third-party apps, but Shopify is rolling out support directly through shipping partners like DHL eCommerce and DHL Express—making it easier than ever to manage international fulfillment.
Remember: If you don’t use a DDP label, your buyer may be double-billed for duties even if you collected them at checkout.
Step 5: Simplify with Shopify Managed Markets
For U.S.-based merchants looking for maximum simplicity, Shopify Managed Markets takes international selling a step further. It offers:
- Guaranteed duties and import tax calculation
- Prepaid shipping label purchase through Shopify or your 3PL
- Customs screening to flag potentially problematic products
- Fraud protection for international orders
By automating the hardest parts of global trade, Managed Markets helps you expand your reach without getting bogged down in red tape.
Step 6: Communicate Clearly With Your Customers
Whether you choose DDP or DAP, transparency is key.
For DAP (Delivered At Place):
- Add a note in your shipping policy and order confirmation emails explaining that the customer is responsible for duties upon delivery.
- Let them know there may be additional processing or handling fees charged by the shipping carrier or customs office.
For DDP (Delivered Duty Paid):
- Highlight that all taxes and fees are included in the price.
- Reassure shoppers that they won’t be asked to pay anything extra upon delivery.
This small step can make a big difference in customer satisfaction and trust.
Step 7: Protect Margins by Diversifying Suppliers
With tariffs on the rise, particularly for products sourced from China, many merchants are reassessing where they buy inventory. Diversifying your supply chain can help you:
- Avoid steep duties
- Reduce shipping delays
- Adapt more quickly to future trade shifts
Shopify connects merchants with a range of product sourcing apps, including:
- Faire – Buy wholesale from global brands
- Collective – Source products from other Shopify brands in the U.S.
- Syncee – Access suppliers in the U.S., Canada, Europe, and Australia
- Printful – Create and ship custom-made products worldwide
Look for suppliers that already operate in your target markets to reduce tariffs and shipping costs.
Step 8: Consider Third-Party Logistics (3PL) Providers
Instead of shipping every package internationally yourself, you can partner with local fulfillment centers in key markets.
Advantages include:
- Lower duties (based on wholesale cost, not retail price)
- Faster shipping times
- Easier returns for international customers
With 3PL partners, your products are stored and shipped locally—minimizing tariffs and improving customer satisfaction. Shopify’s own fulfillment solutions and integrations with logistics providers make this a scalable option for growing stores.
Growing Globally Without Getting Burned
Selling across borders has always come with complexities, but in 2024, the stakes are even higher. Trade regulations are shifting, tariffs are rising, and mistakes can be costly.
But with Shopify’s built-in tools and a smart approach, you don’t have to go it alone. From managing customs duties to optimizing fulfillment, you can create smooth international experiences that delight customers and protect your bottom line.
The global opportunity is still massive. And with a bit of preparation—and a solid strategy—you can take your store further than ever before.
If you’re ready to sell globally, now’s the time to take action. Because while trade rules may change, customer expectations stay the same: fast delivery, no surprises, and a buying experience they can trust.
Shopify Inc.
