5 tariff strategies every Shopify merchant should know

Shopify merchants that source or sell products internationally have found themselves scrambling to mitigate and avoid tariffs. The rising import duties and unexpected fees will eat into profit margins and disrupt the customer experience.

Fortunately, Shopify is plugged into the situation, and there are simple, effective hacks that merchants can implement right now to battle tariffs. These easy tactics help reduce costs and maintain a seamless, satisfying customer experience despite the complexities of global trade.

1. Split high-value orders to stay under tariff thresholds

Also known as the de minimis exploit! We handled a recent scenario where the merchant wanted to avoid paying tariffs on orders over $800, so we implemented a solution to split orders into multiple fulfillments to keep the orders under the threshold.

• Why it works: This approach can help maintain eligibility for duty-free status on individual parcels, where applicable. Note that the U.S. recently eliminated the de minimis treatment for imports from China.
• On Shopify: Utilize Shopify's order management tools to automatically divide orders exceeding a tariff threshold into multiple shipments.

2. Ship inventory and complete light assembly in lower-tariff countries before shipping to the U.S.

Ship products from China to a low tariff country (e.g. Mexico, Vietnam, UAE), where the goods undergo light "substantial transformation" (e.g. labeling, assembly, customization), then ship to the U.S. as products "made in" that country. A merchant we work with is shipping inventory from China to Dubai, where they repack and modify items before shipping to the U.S. While this falls into a legal gray area and isn't necessarily the best solution, it could be a compelling reason to fast-track international fulfillment for companies considering that option.

• Why it works: Country-of-origin rules are complex and transformation loopholes can be exploited if the final product is altered enough to qualify.
• On Shopify: If using a 3PL abroad, connect Shopify's inventory locations to sync fulfillment and transparently display regional origin / shipping info on PDPs.

3. Use product bundling to combine low-tariff and high-tariff products that originate from different countries

Use a Shopify bundle builder app or custom scripts to algorithmically create bundles that combine low-tariff products with high-tariff ones to spread the cost of tariffs.

• Why it works: Combining low- and high-tariff products redistributes the cost and optimizes profit margins.
• On Shopify: Set rules that prioritize inventory origin when generating bundles to steer customers toward blended-CIF-value carts.

4. Use product personalization to change the harmonized system code of a product to a lower-tariff category

Add a custom engraving or modification option on PDPs that technically alter the end use or classification of a product enough to justify a different (and possibly lower) HS code.

• Why it works: HS codes dictate duties. Small changes can move a product from a tariffed category to one with lower or no tariffs.
• On Shopify: Shopify apps for “product options” can easily capture customer personalization requests and automate backend SKUs that match new HS codes.

5. Enable “Ship Later” with smart tariff timing

Offering a “Ship Later & Save” option at checkout can help queue shipments and time them around tariff windows, holiday duty reprieves, or batch consolidation to minimize overall costs.

• Why it works: Some tariff increases have implementation windows. Merchants can delay fulfillment strategically and avoid peak duties, while offering savings directly to customers.
• On Shopify: Use delivery date pickers or a custom checkout script to offer this at the cart level (e.g., “Ships in 3 weeks = $X cheaper”).

If you have questions about managing tariffs, migrating to Shopify, or creating custom retail solutions, reach out to us at founders@lazertechnologies.com.

Lazer Technologies is a Shopify Premium Partner building commerce experiences for top brands on the platform.