What Are Tariffs? A Guide for Shopify Merchants

What Are Tariffs? A Guide for Shopify Merchants

If you're selling online and shipping across borders, chances are you've come across the term tariff. But what exactly are tariffs, and how do they affect your Shopify business?

Let’s break it down.

What Is a Tariff?

A tariff is a government-imposed tax on goods imported from another country. When a customer places an international order, their country may charge them an import duty—this is the tariff.

Tariffs vary by country and product type, and they’re usually calculated based on the product’s declared value and classification (also known as the HS code).

Why Tariffs Matter for Shopify Merchants

If you’re not transparent about tariffs, your international customers may get hit with unexpected fees upon delivery—which can lead to:

• Negative reviews

• Increased return rates

• Abandoned carts from international buyers

• Damaged brand trust

Understanding and communicating tariffs clearly is key to a better customer experience.

Can Shopify Calculate Tariffs Automatically?

Not by default. Shopify doesn’t calculate or charge tariffs during checkout. That’s why many merchants use apps or third-party tools to estimate or collect duties upfront.

We’ll cover that in the next post of this series.

Final Thoughts

Tariffs might feel like a back-end detail, but they directly impact your customer’s experience. As a Shopify Plus Partner, we help our clients build stores that account for real-world logistics—not just great design.

Need help streamlining international sales and setting up duty transparency? Book a free call with our team today.