If you’re an e-commerce seller sourcing products from China, the recent swings in tariff rates have been nerve-wracking. The reduction from 125% to approximately 50% offers a time-sensitive opportunity to protect your margins from future tariff increases and scale your business. After steep duties that squeezed profits and delayed shipments, the reduction announced in May provides a short window, through mid-August, for online retailers to act strategically.

For months, elevated tariffs — some reaching as high as 145% — made it difficult or impossible for smaller online businesses to justify restocking even their most profitable SKUs. The new, temporary rates slash those duties down to as low as 30%, making it far more feasible to import high-demand goods from China without taking a financial hit. Major retailers are already moving fast, increasing shipments, stocking up for Q3, and negotiating aggressively with suppliers. Smaller sellers should do the same.

Here’s why this matters so much: tariffs directly affect landed cost. When duties are high, many retailers are forced to either raise prices, cut margins, or pause orders altogether. Pausing inventory replenishment leads to stockouts, missed opportunities during peak sales windows, and weakened relationships with loyal customers. The current tariff reprieve provides breathing room. E-commerce sellers can replenish inventory, adjust pricing, and rebuild margins—all before the end of summer.

Restock Inventory

The first and most important step is to restock inventory while tariffs are low. Many sellers held off on large orders earlier this year because the math simply didn’t make sense. Now, it does. If you have the cash flow or access to financing, this is the time to load up on your core products, especially fast movers and seasonal items you’ll need through September. Prime Day, back-to-school, and early holiday prep are all coming. Sellers who wait until the last minute or until tariffs return to their previous levels will likely find themselves paying more and competing for slower shipping lanes.

Renegotiate with Suppliers

This brings us to your supplier relationships. Now is the time to renegotiate. With tariffs down, your cost of goods sold should be lower, not just because of reduced duties, but also because suppliers are feeling competitive pressure. Chinese manufacturers lost significant US business during the tariff surge. Many are eager to win back orders and will be open to lowering prices, increasing order quantity incentives, or offering more flexible payment terms. Don’t hesitate to start the conversation. Be transparent about your business goals and work together to build a mutually beneficial plan.

Revamp Pricing and Promotions

Consider how these reduced costs can help you revamp your pricing and promotional strategies. Are there bundles, limited-time offers, or customer loyalty discounts you can offer now that your margins are stronger? If you raised prices over the past year to accommodate duty increases, this may be the right time to lower them back or to hold prices steady and reinvest the savings into advertising, improved packaging, or shipping upgrades that add customer value.

Clock Is Ticking

Remember, this opportunity won’t last. The tariff cuts are only in place until around mid-August, and there’s no guarantee they’ll be extended. Retailers are already seeing increased congestion in ports and warehouses as larger importers race to move products before the clock runs out. That means delays are possible even if you act now, so don’t wait. Lead times are tightening, and if you want your shipments on shelves or in fulfillment centers by July or early August, orders need to be placed immediately.

Look Into Other Sourcing

Looking beyond the next 60 days, this tariff cut is also a reminder of the importance of supply chain flexibility. While it’s smart to take advantage of the current savings, it’s also worth using this time to explore alternative sourcing options. Countries like Vietnam, Thailand, Mexico, and even US-based suppliers are becoming more competitive and offer stability against future policy shifts. It’s not about replacing your China sourcing overnight—it’s about creating a contingency plan so your business isn’t caught off guard next time duties spike.

Forecasting

You should also be building out your inventory forecasting models with “what-if” planning in mind. What happens if tariffs return to 145% in September? Can you still offer free shipping? Will your bundles still be profitable? Will you need to raise prices, and how will that affect conversion rates? These are the types of questions that should be answered now, before you’re faced with a tough choice between eating the cost or turning away customers.

In short, this tariff rollback is a critical moment for online retailers. It’s your chance to rebuild stock, secure better supplier terms, improve your pricing strategy, and prepare for the uncertainty ahead. It’s also a powerful reminder of how global trade policy directly impacts the daily decisions of even the smallest e-commerce business.

If you’ve been waiting for the right time to invest in growth, this is it. Act with urgency, and position yourself for a stronger Q3 and Q4. Opportunities like this don’t come around often. Make it count.

Eric S. Youngstrom is Founder and CEO of Austin-based Onramp Funds, an innovative fintech that supports the growth of SMB e-commerce businesses by redefining the way e-commerce companies are funded. Eric leads a team steeped in e-commerce, providing financing and other resources to empower online merchants to scale their businesses and achieve their dreams.