Will Trump KILL Dropshipping? 😱

now that Trump has been elected to be the 47th president of the United States it leaves a big question unanswered will he effectively destroy Drop Shipping with his promise to impose a 60% tariff on all imports from China or is there a bit more to this story well before we get to the actual tariffs it's important to first understand the economic situation that Trump will be walking into when he gets sworn in on January 20th there's no argument that Americans rely heavily on items imported from China for various reasons including low labor costs low regulation and free trade agreements manufacturing items in China and having them shipped into United States is much cheaper than making the products domestically in fact if the items you're importing cost less than $800 then it's even cheaper that's because anything under $800 falls under the DI Minimus exception this exception allows you to import any items from China into United States without any duties and with effectively no Customs as long as the items fall under that price threshold of $800 and that has created an amazing opportunity for drop shippers you can sell products using your Shopify or eBay or Amazon account and then once they sell you can just buy it from a manufacturer in China who will then ship it directly to your customers for very little money and that makes the markup on this business model pretty unbelievable for instance I bought this necklace from a seller on AliExpress I had it manufactured by them it was shipped here it got delivered to me all of that for just $2 that is it and this same necklace is being sold for about $40 on different people's Shopify stores so how can manufacturers in America even compete with that well the truth is they can't and that has upset a lot of Americans recently Biden has taken notice of this and has announced his plans to close the dominous loophole not only will that result in additional cost to import these items but it will also take significantly longer to clear Customs while the exact extent of this is pretty unclear it is very likely that with these new changes Drop Shipping from China the way that most people do it will take way too long for consumers who are increasingly used to 1 to 3day shipping and with the additional costs involved any advantage that drop shippers had when they were Drop Shipping from China will be effectively wiped out but like I said this was one of Biden's plans and I think a lot of people think that as soon as Trump enters office he's just going to scrap every plan that Biden had but that's not actually true this in particular is one of those plans that Trump would be a big supporter of we don't know his exact stance on it yet but this is the exact kind of plan that he would put into place because he is so Pro manufacturing here in the United States and so anti-china in fact Trump would likely implement it more aggressively than Biden is and he won't just stop there part of Trump's platform when he was running for president was that he promised he would raise tariffs on imported goods you see he feels that the free trade that exists between the United States and foreign countries is unfair to American manufacturing and puts their interests over our own that's why he has promised a staggering 60% tariff on Goods imported from China and 10% for all other countries so if that happens and if you're drop shipping from China you may soon have to deal with one duties two customs and three tariffs and I think all those combined would completely destroy this business model if that's what Trump actually does you see some analysts have claimed that Trump isn't actually going to do this that either one he doesn't have the legal authority to do it or two even if he does have the legal Authority it's not actually what he wants to do that instead he's just going to use this as a bargaining chip with China now others disagree with this others think that he absolutely does have the power to do this and he will do it but all that kind of remains to be seen how it's all going to shake out regardless it does seem that Trump is set to shake up this entire industry and some retailers are already taking precautionary measures some for instance have begun to order Surplus Goods to store in their us warehouses pre- tariffs but once the tariffs are in place and that Surplus Runs Out they'll then need to raise their prices to get new stock in their warehouses so the companies that are going to win here are the ones that are able to store the most prear inventory which actually creates a great opportunity for people like me who drop ship from these big us retailers

while everyone else on eBay will have to raise their prices I'll be able to keep mine lower for several more months because Amazon and Walmart will still have lower prices because they are the ones who are able to store the most pre- tariff inventory so I think this will actually be a big opportunity for people that drop ship using this method now I'm not going to dive into my exact process for how I drop ship in this video but if you want to learn more about it then you should download my free Drop Shipping Secrets ebook you can find it at the first link in the description down below and that's just a great resource to get you started and I did make it completely free for you now it's not all bad news for us drop shippers now that Trump has been elected in fact some of his policies can be quite beneficial so for instance a lot of you might have heard that Congress is trying to ban Tik Tok in the United States and there's been quite a push for this but Trump is one of those politicians who doesn't seem to want to do that in fact he seems to like Tik Tok so the likely hood of Tik Tok being banned in the United States under Trump is much lower than it was under Biden and in general Trump is also very Pro business at least if you're a US business so for instance he implemented the tax cuts and jobs Act of 2017 which allowed some businesses to deduct up to 20% of qualified business income and a lot of small business owners like Drop shippers were able to take advantage of that now that's set to expire in 2025 but it may be extended now that Trump is going to go into office so to sum this up Trump appears to be anti-china but Pro us business it's kind of hard to tell what the next four years will look like for us drop shippers luckily the type of Drop Shipping we do is very flexible we leave it to the big companies like Amazon to adapt to these changes and then we continue to benefit from Drop Shipping from them and while most of these companies get their items from China right now there have been many reports that some of them are already moving manufacturing over to Mexico so what do you think let me know in the comments section down below if you think Trump will be good or bad for Drop Shipping and then we'll come back in four years and see who was right in the meantime I'll see you in the next video bye for now