February 7, 2025
LAS VEGAS – After a whirlwind week that saw the Trump administration slap Canada and Mexico with 25% tariffs (only to reel them back with a 30-day pause) plus a 10% tariff on Chinese goods, Prosper Show exhibitors and speakers had a lot to say. Dakota Morse, CEO and founder of the Calif-based ALT Group expressed considerable skepticism that tariffs would benefit online sellers.
“I believe these newly imposed tariffs will disproportionately burden U.S. businesses rather than achieving their intended effect of protecting American manufacturing,” says Morse, who’s extended remarks will appear as an article in next week’s newsletter. “The 10% tariff on Chinese goods and the 25% tariff on imports from Canada and Mexico will force U.S. businesses to either absorb higher costs or pass them on to consumers.”
For those selling across Amazon and other channels, Shannon Curley predicts tariff changes will bring real challenges. “Losing the de minimis exemption is going to put private-label sellers and drop-shippers who built businesses on Chinese imports at a major disadvantage,” says Curley, director of Marketing, Carbon6 Technologies, Toronto, Ontario. “Not to mention, if you’re using FBA or 3PL, the potential 25% tariffs on Canada/Mexico trade are no joke—even as we wait to see what happens with the 30-day pause.
“The potential silver lining for U.S.-based brands is that international sellers are almost certainly going to lose the pricing edge,” Curley continues. “It wouldn’t be surprising to see Amazon and Walmart’s marketplaces become more concentrated as a result. Smart sellers will look at diversifying supply sources and exploring near-shoring options as we all brace for impact.”
Andrew Maffettone, founder and CEO of BlueTuskr, West Chester, Pa. reports that as soon as the tariffs originally took effect, several of the brands (who sourced from Canada, Mexico, and China) he worked with immediately paused advertising to reassess their strategy.
“It was a hectic weekend,” Maffettone laments. “Conversely, brands emphasizing an ‘American Made’ identity leaned further into that messaging. Until the dust settles, I anticipate a surge in Americana-themed marketing. Now that the tariffs have been paused, we’re back to normal, but a lot of conversation has started around how we’ll be adjusting when/if they are back in place. While these tariffs will likely drive up costs for consumers, the extent remains unclear. Some exporters may lower prices to maintain sales volume. Time will tell.”
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