The US-China Trade War And Its Effects On Dropshipping

What is dropshipping? This question had been raised many times by individuals wanting to take on the ecommerce business, especially with the arrival of the internet and technologies permitting people to market their products without needing a physical store as well as for consumers to go on a shopping spree online anytime and anywhere.

This 2019, if you’re attempting to try out dropshipping or would want to make a website for dropshipping, your venture may be affected by the trade wars between the United States and China as China is increasing tariffs on about 5,000 products coming from the US, and retorting to the actions made by the US, several might be face with 25% tariffs.

The Trade War – What is it?

When a nation wants to look after its domestic industries, they may put tariffs on countries who import their products. This is exactly what is taking place with the trade war between the US and China. The US plans to fuel US commerce within their nation hence tariffs are placed in Chinese goods. Conversely, China is hitting the US back with their tariffs as well. The US intends to generate more employment and lesser dependence on products by China. The present trade war is in progress and it isn’t certain how serious it can turn out to be or if it will become stable in the close future.

Imposed Tariffs and Dropshipping

For dropshipping businesses, you might not be musch affected with the ongoing trade wars and could still set up a website for dropshipping without having to worry too much. There is a maximum tariff 200 US dollars which are free from duty. Majority of products that are dropshipped are beneath this threshold therefore you won’t be greatly affected by the trade wars and tariffs. You may feel the effect when selling costly products, however it won’t be as much as you think.

What the Future Holds

If you plan to set up a dropshipping website, you have to be aware and well-informed of the current trade wars as it is unclear what may transpire in the impending future. Things can worsen as both nations have entered a match up over tariffs that’s hitting the economy. These trade wars may possibly carry on into the year 2020 and may extend if the present US administration is re-elected.