Digital goods are not affected by tariffs

Recent tariff hikes on imported physical goods have disrupted many businesses, especially those relying on drop shipping and international supply chains.

However, digital creators remain unaffected by these changes, as tariffs do not apply to digital products.

This presents a unique opportunity for creators to expand their reach and monetize their content globally—without the constraints faced by physical goods sellers.

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The impact of recent tariffs on physical goods

On April 2, 2025, President Donald Trump announced sweeping new tariffs, including a baseline 10% tariff on all imports and higher rates for specific countries:

• 34% on Chinese goods
• 20% on European Union imports
• 24% on Japanese products

These measures are intended to promote domestic manufacturing, but they’ve also sparked concerns about rising prices and inflation.

“We’re going to put American jobs first again,” Trump said at the announcement rally in Michigan.

— AP News

Businesses that depend on drop shipping or import-heavy models are particularly at risk. The increased costs from tariffs can lead to:

• Higher prices for consumers
• Reduced profit margins
• Delays and logistical headaches

“Companies are scrambling to adjust supply chains again… some are halting expansion plans.” — Reuters

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Digital goods: a tariff-free opportunity

Unlike physical goods, digital products are not subject to tariffs. This means creators who sell eBooks, courses, templates, design files, or subscriptions don’t need to worry about customs, shipping, or unexpected fees.

In fact, trade agreements like the USMCA (formerly NAFTA) explicitly prohibit customs duties on digital products that are transmitted electronically.

“No Party shall impose customs duties, fees, or other charges on digital products transmitted electronically.”

— USMCA Article 19.3, via Norton Rose Fulbright

This exemption allows digital creators to distribute their products globally without the additional costs and complications associated with tariffs. Platforms like Sherpo empower creators to build and sell these products effortlessly—no shipping delays, no border issues, and no tariff hikes.

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Advantages of selling digital products

• Global reach: Digital products can be sold and delivered instantly to customers anywhere in the world, expanding your potential market.

• Lower overhead costs: Without the need for manufacturing, warehousing, or shipping, digital products reduce operational expenses.

• Scalability: Once created, digital products can be sold repeatedly without additional production costs, allowing for higher profit margins.

• Resilience to trade policies: Since digital goods are not subject to tariffs, creators are insulated from the financial impacts of international trade disputes.

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Conclusion

The new tariff hikes serve as a wake-up call for creators still relying on physical goods. Whether you're selling merch, doing drop shipping, or running an eCommerce business, you’re now exposed to a lot more risk and a lot less margin.

Digital products are future-proof. They’re scalable, borderless, and immune to trade wars.

Start monetizing your audience today with Sherpo— the easiest way to sell any digital product for free.