Importing from China remains central to US supply chains in 2025, but rising tariffs, logistics costs, and shifting trade policies are testing margins. Learn which items imported from China remain profitable, where new opportunities are emerging, and how to calculate costs to stay competitive.
Imports from China have long been a backbone of US retail and manufacturing supply chains. But in 2025, sweeping tariff hikes, the rollback of de minimis exemptions, and volatile shipping costs are forcing businesses to rethink whether importing from China is still profitable.
For small businesses and tech buyers alike, the answer depends on how landed costs are calculated, which product categories hold margin potential, and how well importers adapt to trade policy shifts. This article addresses these concerns and more.
Key takeaways:
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China has long been a dominant supplier to the US market. In 2024, the U.S. imported about $462.6 billion worth of goods from China, making it one of America’s top import sources. But starting in 2025, the Trump administration began to fulfill campaign promises by imposing sweeping tariff hikes and revoking long-standing trade exemptions. (See: TechRepublic’s coverage of Trump’s tariff plan and its impact on prices, jobs, economy.)
Between early 2025 and mid-year, trade policy oscillated: new tariffs were announced, some were briefly paused, and tariff exemptions (especially the de minimis policy) were rolled back. Meanwhile, major retailers and trade groups have publicly voiced concerns. The National Retail Federation warned that cargo volumes will likely fall significantly as cost and regulatory risk pushes companies to pull back.
That volatility is reshaping import patterns. In June 2025, U.S. ocean imports from China dropped by 28.3% year-over-year as tariffs took effect. Cargo volume in major U.S. ports is forecast to decline 5.6 % for the year versus 2024, reflecting the drag from new trade policy. For many U.S. importers, the question is no longer if profit margins will be squeezed, but by how much and how fast they can respond.
As tariffs expand and exemptions roll back, the ripple effects of higher costs are spreading across the economy. Importers face pressure to adapt quickly, but the outcomes differ depending on whether you’re a consumer, a small business owner, or a corporate buyer managing supply chains.
For consumers:
For small business owners:
For tech buyers and larger organizations:
Tariffs often take center stage in conversations about importing from China, but they are actually only one piece of the profitability puzzle. Shipping rates, currency fluctuations, supplier pricing, and hidden operational costs all contribute to the final landed cost of goods. These conditions typically rise and fall with market cycles, but in 2025, the volatility has been sharper. Here’s what is happening now and why it matters.
Container rates from China to the U.S. have surged despite some tariff relief, driven by port congestion and demand spikes. After a tariff pause, spot rates for 40-foot containers rose steeply. Freightos reports persistent delays and rate volatility as global shipping routes recalibrate. For tech buyers relying on tight lead times, this means higher buffer costs or risking stockouts.
As mentioned, the U.S. has layered in new tariffs this year. In March 2025, additional duties were imposed, raising many tariffs to 20%. Moreover, the de minimis exemption for Chinese imports was revoked, so even low-value parcels now face customs treatment.
Some Section 301 exclusions (for things like semiconductors or batteries) have been extended into summer this year, but those come with limitations. These shifting policies force importers to reclassify goods, recalculate landed costs often, and build in buffer risk.
Fluctuations between the U.S. dollar and Chinese yuan amplify margin uncertainty. A weakening dollar helps importers, but the opposite scenario — yuan strength — squeezes profit buffers already under strain. Importers now need to model FX risk explicitly into their costing and hedging strategies, rather than treating it as a secondary factor.
Facing higher energy costs, material costs, and regulatory tightening, Chinese suppliers are passing more input costs downstream. Some are automating operations, others are narrowing SKUs or raising minimum orders. Quality control and consistency remain concerns, especially for complex electronics. Tech buyers must insist on tighter quality checks, longer warranties, and fallback suppliers to manage risk.
Even beyond tariffs, importers face a stack of less visible expenses that can undermine profitability:
Import demand from China is changing, especially when it comes to which categories remain profitable. Rather than simply chasing low-cost goods, importers are looking at product types that balance resilience, margin potential, and shipping efficiency. The following categories highlight where momentum is building and which niches are positioned to outperform despite volatility.
Note: These categories represent where new demand is building in 2025, reflecting changing consumer preferences and the impact of trade policy. They are not yet the core of U.S. imports, but they show where growth and opportunity are headed.
While emerging categories show where demand is headed, there are also well-established imports that continue to deliver consistent margins. These products have long been staples in U.S. supply chains, and despite tariff pressure, they remain profitable for importers who manage costs and logistics carefully. The categories below represent proven opportunities rather than experimental bets.
(per unit landed) | ||||
|---|---|---|---|---|
| Consumer electronics and smart accessories | Smart plugs, sensors, chargers, wearables | Sensitive to tariffs; strong volume demand | ||
| Home improvement and décor | LED fixtures, modular shelves, décor | Lightweight but bulk packaging can increase freight costs | ||
| Fitness and wellness | Bands, massage guns, skincare tech | Compact products offset shipping costs | ||
| Eco-friendly packaging and sustainable goods | Recycled/compostable containers, utensils | High demand from retailers with ESG goals | ||
| Fashion accessories and lightweight goods | Jewelry, eyewear, phone cases, small leather goods | Lightweight goods = lower freight cost, higher markup potential | ||
| *Landed cost estimates include product cost, average ocean freight allocation, and tariffs where applicable. | ||||
Electronics remain the top import from China: in 2024, the U.S. imported about $127.06 billion worth of electrical and electronic equipment. With component exemptions and supply chain dominance, niche accessories (smart plugs, mini sensors, wearables) remain strong bets. Meanwhile, recycled packaging, compostable materials, plant-based utensils, and eco-friendly storage containers are rising in appeal due to CPG sustainability goals.
The rest of the evergreen profitable items remain popular because they’re lightweight, which mitigates shipping cost penalties and allows for higher markup potential.
Choosing the right product goes beyond finding the lowest supplier price. Weigh demand, margin potential, and risk before committing capital. Here is a simple framework and some upfront calculations to help determine whether a product is worth pursuing.
This framework helps importers quickly assess whether a product is realistic given their size and resources.
Landed cost is the total expense of getting a product from the supplier’s factory to your warehouse in the US. It includes the product price, freight, tariffs and duties, insurance, customs brokerage, and local handling fees.
Formula: Landed Cost = Product Price + Shipping + Tariffs/Duties + Customs & Brokerage + Insurance + Warehousing
TIP: Check tariffs before you import
Tariff rates vary widely by product category, and they change often. Importers should always confirm current rates using official sources before finalizing orders.
Example: importing leggings from China
Leggings fall under HTS code 6104.63.2026, with a 28.2% tariff rate on imports from China. If you order 1,000 units at $4 each:
If sold at $15 retail, the gross margin is roughly 50%. But if tariffs rise or shipping costs spike, that buffer shrinks quickly, showing how sensitive profitability is to these variables.
For small importers, high minimum order quantities can tie up cash, quality control checks are harder to fund, and tariff spikes cut deeper into margins. They also rely heavily on freight forwarders, which limits bargaining power. Larger importers, by contrast, can absorb bigger orders, invest in third-party audits, hedge against tariff volatility, and secure better logistics contracts, making them more resilient when costs rise.
This shows why the same product can be profitable for a larger company but risky for a small business.
Importing from China in 2025 comes down to careful planning. Follow these steps to move from product selection to customs clearance with fewer surprises.
Start with high-demand categories that align with consumer trends. Use tools like U.S. import data, Google Trends, or Amazon Best Sellers to validate demand. Apply the framework:
Profitability = Demand × (Selling Price − Landed Cost) − Risk
This helps filter out products that look cheap but are margin-negative after tariffs and freight.
Confirm whether your product needs an import license, FDA approval (for food, cosmetics, medical devices), FCC compliance (for electronics), or other certifications. Missing this step can lead to customs holds and fines.
Use platforms like Alibaba, Global Sources, or trade fairs, but always vet suppliers:
Finding the right supplier is often the most decisive step in a successful import strategy. Beyond cost, importers must evaluate reliability, compliance, and communication.
Ready to connect with suppliers? Browse Alibaba’s supplier directory to compare verified manufacturers, check product categories, and request quotes directly.
Order samples before committing to bulk orders. Use third-party inspection agencies in China to verify factory processes, product quality, and packaging compliance.
Confirm MOQ (minimum order quantity), unit price, and lead time. Negotiate on:
Decide between FOB (Free on Board) and CIF (Cost, Insurance, and Freight) terms. Work with a freight forwarder to book ocean or air freight. Prepare a commercial invoice, packing list, and bill of lading. Customs brokerage ensures duties are paid and HS codes are classified correctly.
This is where profitability becomes clear. Landed cost includes the product price, shipping, tariffs and duties, customs fees, insurance, and warehousing. Once calculated, it determines how much markup is needed to maintain margins.
For a detailed example using apparel imports, see the How to evaluate if a product is worth importing section, where we walk through landed cost and selling price calculations.
Even in a volatile trade environment, importers can take steps to protect margins and improve profitability. These strategies help offset higher tariffs, shipping costs, and compliance risks.
For small businesses, the decision to import from China is less about finding the cheapest supplier and more about survival under tighter margins. Unlike large corporations, SMBs can’t spread risk across dozens of suppliers or hedge tariff exposure.
The reality check: A single tariff hike or customs delay can erase profits on a small shipment. Minimum order quantities tie up scarce capital, and inventory costs hit SMBs harder than large importers. By contrast, big-box retailers can absorb shocks that would cripple a smaller operation. For example, a $20,000 shipment might lose $3,000 in margin from a 15% tariff hike — a manageable setback for a retailer importing $5 million, but a major blow for a small business.
Where opportunities remain: Some small importers still succeed by targeting lightweight, high-margin products. Boutique retailers, for instance, have leaned into eco-friendly accessories and specialty fitness gear that consumers will pay a premium for. By focusing on niches and keeping volumes modest but profitable, SMBs can compete without clashing directly with larger players.
The challenges ahead: Tariff volatility, compliance costs, and cash flow strain make importing riskier at small scale. Testing, certification, and customs brokerage fees weigh heavier per unit, and even minor policy shifts can derail profitability. Many SMBs are responding by cutting inventory, delaying launches, or diversifying sourcing beyond China.
In short, importing from China can still be worth it for small businesses — but only when margins are modeled conservatively, products are chosen for resilience, and logistics are managed with reliable freight partners. Without that discipline, the risks can outweigh the rewards.
Most consumer goods don’t require a special license to import into the US, but certain categories — such as food, cosmetics, medical devices, or telecom equipment — need approvals from agencies like the FDA or FCC. Importers always need an IRS/EIN number to clear shipments through customs.
Lightweight, non-regulated products such as fashion accessories, phone cases, and home décor are among the easiest to import. They typically face fewer compliance hurdles and have lower shipping costs compared to electronics or regulated goods.
Tariffs increase landed cost directly. Apparel, electronics, and other categories all carry different duty rates, with changes in 2025 raising costs across the board. See the profitability section for current rates and examples.
Agatha Aviso is a seasoned expert in retail, eCommerce, and order fulfillment, with a specialization in payments, POS systems, and eCommerce software. She has collaborated with startups and service-based entrepreneurs on content strategy, offering digital marketing expertise and guiding small business owners in launching their online storefronts. Beyond consulting, Agatha applies her knowledge firsthand—building her own website as well as ecommerce sites for the platforms she reviews.
