While recent news of United States President Donald Trump’s on-again off-again tariffs has led to wild swings in markets and shaken businesses globally, companies that rely on open trade between China and the U.S. are among the most susceptible to becoming collateral damage.
Temu and Shein aren’t the only companies that will be disrupted by a trade war between the U.S. and China. Many other small and medium-sized businesses, such as those involved in dropshipping, will also be affected.
“At the moment, we’re seeing about a 33% decrease in revenue,” said Kamil Sattar. The 25-year-old runs a dropshipping business with online stores that sell items such as outerwear, mobile accessories and more.
Dropshipping is a type of e-commerce fulfillment method where sellers process orders by passing them to suppliers, who then ship the products directly to the customers. This often involves buying items sourced from Chinese suppliers or manufacturers and selling to the U.S. or other developed markets. This ultimately eliminates the need for sellers to carry their own inventory.
“You’re able to sell products online, but you don’t have to pay for the stock until a customer comes on your online store and makes a purchase,” said Sattar.
It is a popular business model among side hustlers and entrepreneurs, as it requires little capital and can be built entirely online using platforms like Shopify, along with marketing tools such as paid ads and content creation.
Content retrieved from: https://www.cnbc.com/2025/04/21/dropshipping-businesses-china-under-pressure-trumps-tariffs.html.
