Ecommerce company Etsy is promoting domestic sellers as US tariffs on imports are expected to increase costs for consumers.

The company has launched initiatives to help buyers discover local businesses through curated shopping pages and featured listings on its website and app.

This comes as President Trump’s tariffs, including a 145% rate on Chinese imports, are set to take effect on May 2.

Etsy CEO Josh Silverman said that the company is working to limit disruptions for its 5.6 million active sellers.

Etsy’s focus on locally sourced and artisanal goods may reduce its reliance on imports, potentially lessening the tariffs’ impact. However, US consumers may still face price increases as businesses adapt to higher costs.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ E-commerce business models face uneven tariff impact based on supply chain structure

Etsy’s marketplace model gives it a natural resilience during tariff disruptions compared to competitors like Shein and Temu, which rely almost entirely on Chinese imports.

Marketplace platforms connecting domestic sellers with local buyers can avoid much of the impact of international tariffs, a strategic advantage Etsy is now actively promoting with its new local shopping features 1.

During previous tariff implementations, businesses with more flexible and diversified supply chains consistently managed trade disruptions better than those with rigid, single-country sourcing 2.

The contrast is clear: Temu and Shein have already announced price increases starting April 25 due to the 145% tariff rate on Chinese imports, while Etsy’s CEO believes his platform “will be more resilient than many competitors” thanks to less dependence on Chinese manufacturing 1.

Amazon faces a middle-ground scenario with approximately 25% of its cost of goods sourced from China—a significant exposure but less severe than platforms solely reliant on Chinese imports 3.

2️⃣ De minimis exemption removal reshapes cross-border e-commerce economics

The elimination of the de minimis provision on May 2—which previously allowed duty-free imports under $800—represents a major regulatory shift in cross-border e-commerce.

This exemption has been crucial to the business models of platforms like Shein and Temu, enabling them to ship millions of individual low-value orders directly to U.S. consumers without paying duties 4.