Donald Trump has just up drop shipping in the USA. I'm telling you, these countries are calling us up, kissing my ass. Please, please, sir, make a deal.
I'll do anything, sir. Here is an emergency update. He's now risen the trade tariff from 54% to 145% on Chinese imports.
Now, I just had to take a minute to process that again. 145% tariff. We are in a legitimate trade war.
This is going to a lot of drop shipping stores that are continuously selling to the USA. Now, if you're watching this video and you own a drop shipping store or an e-commerce business and you're getting your products from China, then you need to watch this video. Now, the like goal for this video is going to be 2,000 likes.
If we hit 2,000 likes, guys, I will leave a present in the pin comment and in the description below. So, these are the latest updates that you need to be aware of. We've gone from a 54% tariff to now going to a 145% tariff on any products coming from China.
And that started taking effect immediately when it was announced a few days ago. Now the next major update is the D minimums exemption. So this exemption was allowing products up to the value of $800 to come into the USA from China completely tax-free.
But now Trump has altogether cancelled that exemption and said no to it. So now that means that any products that are subject to duty have either got a 30% value of an increase. Now the good news is this doesn't take effect till June the 1st.
Now it could change but we've got a few months till that starts hitting the tariffs as well. Now what does this mean for drop shippers or e-commerce business owners that are getting their products from China? It just means guys that you know the cost of goods now are going to extremely go through the roof.
Now I want to make this very clear again. This is only if you're selling products to the USA that are coming from China. Now if you're not selling to the USA or you're not sourcing your products from China, then this doesn't apply to you.
Now let's say you are selling your products to the USA but you're not sourcing them from China. Then there are other countries that have got hit with different tariffs that I will put on the screen. So on the screen, these are the latest tariffs on the other countries that are currently going on.
Now, Donald Trump did announce a 90-day pause on the tariffs. Now guys, again, I'm speaking about the American market, the USA. If you're selling to that market, it isn't just the tariffs that you should be worried about.
It's the consumer confidence as well within the USA that keeps dropping. Now, since the last video I made about this, which was around about two weeks ago, the stock market has dropped again, even more. There's a lot of issues going on with the financial market right now, guys.
And the reason why this is a concern is because consumers don't feel confident in buying products online if their portfolio, which is their stock market portfolio, is dropping a lot because it makes them feel poor. Now, the thing is in America, they're trying to drop inflation as much as possible. So the best way to do that is make people feel poor so they don't spend money which means inflation naturally drops.
Now the bad news for the USA consumer market is people aren't going to be confident in buying products at the moment because their stocks, their pensions, their portfolios are dropping very hard. Now that isn't just a concern. We've also got the recession concern in mind.
Everyone's talking about a recession and it is looking more likely that we will go into a recession. So, they're going to only buy products that they need or is essential to their life. And the reason why I'm bringing this up is because if you're somebody that's thinking, well, I buy all my products from America and I'm selling to America, so I'm going to be fine.
Well, no, you're not going to be fine because the consumers in America are not at the confidence that they once were. They're basically in the gutter, guys. They're at rock bottom right now.
So, the point that I'm trying to make is it isn't just about sourcing from China and selling to America. It's also if you're selling to America, regardless of the infrastructure you've got, the American market right now isn't looking great. Now, don't just take my word for it.
Take the word from Amazon. Amazon is the biggest e-commerce giant in the world. And this is a few statements that the company has made.
Amazon cancels some inventory orders from China after tariffs. Amazon asks sellers for feedback on the tariffs. Amazon product prices could skyrocket because of the tariffs.
Now, let's talk about what you guys should be doing as a drop shipper or as an e-commerce business owner. We have already started slowing down the sales to the US market. We are now moving our advertising budgets from America into the European market.
Now, I will leave a list of European countries that I'd recommend that you sell to. Switzerland, Norway, Belgium, Germany, France, all of these top tier European countries based on GDP are the ones that we're now selling to at a scaled rate. We were already selling to them, but we've increased the advertising budget because we believe the EU will be a stronger market.
Now, I've read articles about Americans leaving America and moving to Europe because they want to avoid all of this nonsense. So, this is the solution, guys. The EU market is now booming.
The euro as a currency has now gone up 10% in value, which means Europeans are going to feel richer spending their euros because the purchasing power has risen. Europeans don't need to worry about tariffs because there isn't any in the European markets. So the point that I'm trying to make is I would highly recommend that you scale down USA sales and increase it in the Europe market.
So guys, before we move into the next part of today's video, I want to give a massive shout out to today's sponsor, which is Zenrop. Now Zenrop is the supplier that I use for all of my brand new drop shipping stores, and I even use them for some of my stores that I'm scaling with. Now, once you've created an account with Zenrop, and by the way, they do have a plan that's completely free to use as a beginner.
Now, if you're looking to go for their plus plan, make sure you use my link in the description because you're going to get $200 in credits and a 51% discount. Now, to summarize this very quickly, guys, the benefits of Zenrop is they are a Western company, so you don't have to worry about language. They have very fast shipping times and quality checking and they're also very accountable if things go wrong unlike Chinese suppliers directly.
They will never show accountability. So these are all the pro things of Zenrop and they also have automatic fulfillment. So instead of you manually clicking buttons, they will autofill all the products for you.
So there are a lot of benefits to using Zenrop. Now if you go to your plans, you can see what the free plan offers and you can also see what the paid plans offers. So, if you want Zenrop Plus, guys, make sure you use my link in the description as you will get a nice discount and $200 in order credits.
Now, if you are certain that you want to sell to America as a drop shipper, then the only advice that I can give to you is either find a European supplier or find an American supplier. Now, if you're going to go with a European supplier like Big Bite EU or any other ones that I'd recommend, then you're going to also get tariffs on those EU suppliers. Now, I believe they're frozen for now, but they're still going to be between 10 and 20%.
Now, if you want to get rid of the tariffs completely selling within the US, then you're going to have to find a USA supplier, and I'll leave a full list of all the suppliers I'll recommend in this video on a cheat sheet once we hit 1,000 likes. It's up to you guys how you want to navigate this. You can either go with a European supplier that sells to the US, take advantage of the tariff freeze at the moment, for the next 90 days.
Now, the only downside to these two methods are is obviously your cost of goods are going to go through the roof because you're paying American and EU prices, which means you will need to start selling high ticket products if you are going to go down those two avenues. Now, if you don't want to mess around with any of that, then just stick to EU drop shipping, guys. Find your suppliers in China like normal, but just sell to the EU markets.
That, in my opinion, makes the most sense. Just let this trade war nonsense settle down, guys, cuz it's so hard to navigate within the USA right now. And in my opinion, it's just not worth the hassle and risk right now.
So, if I was you, just stay up to date, keep subscribing to the channel, keep watching my updates, and then eventually I'll tell you guys when is the right time to go full force again in the US market. But with that being said, guys, let me know if I've missed any updates out in the comment section below. Let me know if you found any other things that you'd want to add to this video.
