Why Choosing the Right Trade Term—Like DDP—Matters More Than Ever
In today’s volatile trade landscape, tariffs are back in the spotlight—especially for businesses importing from Asia. With the recent reintroduction of high tariffs by the Trump administration, many U.S. importers are seeing sharp increases in landed costs. For importers of goods like furniture, kitchenware, electronics, or apparel, the pressure is real.
So how can buyers navigate these rising costs? The answer lies not just in negotiating better product prices—but in rethinking how you structure your international shipments.
The Game Changer: Delivered Duty Paid (DDP)
One of the smartest moves buyers can make in a high-tariff environment is to negotiate DDP (Delivered Duty Paid) terms with their suppliers or freight forwarders. Under DDP, the seller is responsible for all costs and risks up to delivery at your door—including customs clearance and payment of all import duties and taxes.
This means as a buyer:
✅ You don’t have to worry about unexpected customs bills.
✅ Your cost per unit is fixed and predictable.
✅ You save time and resources by avoiding import compliance headaches.
✅ You can focus on selling, not clearing.
Why This Matters in 2025
With U.S. tariffs now ranging from 20% to nearly 50% on imports from countries like Vietnam, China, Cambodia, and Thailand, buyers using EXW or FOB terms are shouldering massive cost volatility. You may think you’re getting a great deal—until the container lands and your customs broker delivers a shockingly high bill.
In contrast, DDP allows you to lock in total costs upfront, eliminating tariff surprises. Your supplier or logistics partner absorbs the complexity, often bundling the cost of duties into their final invoice.
When DDP Makes Sense
While DDP is not always the cheapest option, it’s often the most efficient and lowest risk strategy when:
- You import regularly and need consistent landed pricing
- You don’t have a strong customs or logistics team
- You’re selling on tight margins and can’t afford tariff volatility
- Your shipments are relatively small but frequent (like e-commerce)
It’s especially popular among U.S. Amazon sellers and small-to-midsize retailers who want “plug and play” import logistics.
The Catch? Not Every Supplier Offers It
Many Chinese factories and suppliers prefer EXW or FOB terms, because they don’t want to deal with foreign customs regulations. But that’s where a good freight forwarder comes in—companies like Zcyt Logistics specialize in DDP solutions from China to the U.S., handling everything from pickup to final delivery, including all taxes and duties.
Final Thoughts: Trade Smarter, Not Just Cheaper
In a world of rising tariffs and shifting supply chains, the smartest importers aren’t just asking “How much per unit?”—they’re asking “What’s my true landed cost?”
Choosing DDP can help you stabilize pricing, reduce risks, and streamline your operations—giving you a competitive edge in a very uncertain environment.