Starshipit reveals how Australian fashion brands should navigate US tariffs.
When US tariff changes landed last year, most Australian retailers felt the impact straight away. Costs shifted overnight, shipments became harder to predict, and long-standing processes suddenly didn’t work the way they used to. For a lot of brands, especially in fashion and beauty, the early months were defined by uncertainty.
However, what we’re seeing now is far more measured. Retailers have taken stock of what’s changed, adjusted their pricing and fulfilment strategies, and are finding more stable ways to operate in the US again. Instead of stepping back, they’re becoming more deliberate, focusing on clarity, margin protection, and customer experience.
What the tariff changes actually meant in practice
For years, many Australian retailers predominantly used Delivered Duty Unpaid (DDU). It wasn’t perfect, but it generally worked: parcels cleared, and on the rare occasion duties were applicable, shoppers paid them on arrival, and any hiccups were manageable.
That quickly changed when the US effectively removed its long-standing USD $800 de minimis threshold, meaning parcels that previously entered duty-free were suddenly subject to assessment. Customs then began requiring duties and taxes to be paid before parcels entered the country across several major US lanes. Shipments without a verified way of charging the sender for duties and taxes was at risk of being delayed, reassessed, or returned before even leaving Australia – potentially leaving the retailer to absorb the cost of both duties and any returns.
As Abi Bennett, COO at Starshipit, put it, “It wasn’t just that the rules had changed, it was how fast they changed. Retailers went from treating the US like a low-friction market to suddenly dealing with EU-level compliance overnight.”
Apparel, accessories, beauty, and lifestyle brands already operate on tight margins, and in many cases the freight-plus-duty combination potentially wiped out profitability on key items. Add in multi-SKU baskets and fluctuating landed costs, and retailers were facing a level of unpredictability that made long-standing forecasting models almost unusable.
How this shook retailer margins, pricing and forecasting
Order profitability became harder to pin down, not just because duties increased, but because many retailers didn’t have the technology or checkout setup to surface these costs in a clean way. For some brands, especially those with tighter margins or higher-priced items, rolling duties into product pricing wasn’t a viable option. Brands had to suddenly introduce duties and taxes at checkout whether they were ready or not.
This volatility created pressure across the board with the real challenge being inconsistency. Retailers couldn’t rely on historical averages or rough estimates anymore. They needed accurate landed-cost calculations and fulfilment systems that could keep up with the new requirements at the border.
Three clear strategies emerging among Aussie retailers
Despite the disruption, a few reliable solutions have emerged in how retailers are responding. These are practical adjustments that help businesses keep shipping to the US without unnecessary risks.
Strategy 1: Building duties into product pricing
Some brands chose to absorb duties by adjusting product prices. This works best for retailers with strong brand loyalty, where customers are less price-sensitive and more focused on seamless delivery. By factoring expected duties into the retail price, the checkout experience becomes simpler, and the margin for each order becomes more predictable.
As Hakan Steele from Starshipit mentioned in their recent webinar, “There’s always debate around showing duties and taxes or rolling them into the product price. What matters is giving customers clarity and declaring the right value at the border.”
Strategy 2: Showing duties and taxes at checkout
More retailers are now choosing to itemise duties and taxes at checkout, not just for transparency, but because it’s a reliable way to stay compliant with new US requirements. By collecting these costs upfront, retailers no longer need to absorb duties themselves or inflate product prices to cover them.
This approach keeps pricing clean and competitive while ensuring customers understand the total cost of their order before they buy. It also removes the risk of parcels being delayed or refused because duties weren’t paid in advance.
Strategy 3: Using landed-cost tools to remove uncertainty
Many retailers are turning to integrated landed-cost solutions that automate duty and tax calculation and make DDP simple. Tools like Starshipit's Landed Cost Guarantee provide accurate calculations at checkout and include protection if actual duties or taxes come in higher than the estimate, ensuring retailers aren’t left out of pocket.
Because this sits inside their existing shipping automation platform, it’s a cost-effective way to manage compliance, avoid errors, and keep shipments moving without delays. This gives retail teams the clarity they need to forecast properly, update pricing confidently, and deliver a predictable experience to their US customers.
What retailers should focus on now
The past two years have pushed retailers to rethink how they navigate US operations, but the path forward is clearer than it’s been in a long time.
It’s about understanding your true delivery costs, investing in accurate landed-cost calculation, and being transparent with customers about what to expect. It also means building enough flexibility into your pricing and fulfilment models to handle fluctuations.
The US remains a strong growth market for Australian retailers. The brands that continue to succeed will be the ones who adapt early, focus on clarity, and build processes that can withstand a more complex cross-border environment.
This is a partnered content series with Starshipit, which also includes Ragtrader's FREE Supply Chain 2025/26 report. Download the report for free HERE.