What U.S. Tariffs and Exchange Rates Mean for Your Import Costs

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2025-07-09
Blog

Flat illustration of a U.S. map with a downward arrow, money bag, calculator, and currency symbols representing the impact of tariffs and exchange rates on import costs.

If you're sourcing bubble tea ingredients wholesale from Asia, especially from Taiwan, you've likely felt the ripple effects of U.S. tariffs and ongoing currency fluctuations. These two factors can quietly erode your profit margins, inflate logistics costs, and create uncertainty when pricing for your own customers.

In 2025, it's more important than ever to understand how trade policy and foreign exchange dynamics influence your actual bubble tea import costs and what you can do to stay ahead.


1. Tariffs: The Hidden Surcharge on Your Raw Materials

Over the past few years, the United States has imposed a variety of tariffs on goods imported from Asia, especially China, and in some cases, products transshipped through other countries may also be scrutinized. While Taiwan is generally not the direct target of these tariffs, certain OEM bubble tea products or materials may still fall under broad customs categories subject to duties.

For example, items like:

…may be classified under categories with tariff rates ranging from 5% to 25%, depending on their composition and declared origin.

Work with a supplier that understands U.S. customs classifications and can provide accurate HS codes and Certificates of Origin.


2. Exchange Rates: When the Dollar Strengthens, Who Really Wins?

Currency exchange rates are another crucial factor. A stronger U.S. dollar can make it cheaper for American importers to buy ingredients priced in Taiwanese dollars (TWD). However, in volatile markets, sudden shifts in the USD/TWD exchange rate can add unpredictability to your landed costs.

In early 2025, the TWD has shown moderate depreciation against the USD, which could benefit short-term bulk orders. But if you're locking in long-term supply contracts, that small fluctuation may result in thousands of dollars in unexpected cost swings — especially for high-volume items like popping boba or milk tea powder in bulk.

Ask your supplier if they offer pricing in USD to eliminate exchange rate risk.

Want to lock in stable pricing in USD? Contact us today for a customized quote on wholesale bubble tea ingredients.


3. Freight, Fees, and Fuel: The Compounding Effect

Aside from tariffs and exchange rates, other hidden charges can pile up quickly:

  • Fuel surcharges

  • Customs clearance fees

  • Container detention or demurrage

  • Port congestion or rerouting due to global tensions

As a result, your “per kilogram” price for bubble tea raw materials might appear attractive, but the final cost per carton delivered to your warehouse can be much higher.

Request an all inclusive CIF or DDP quote from your bubble tea supplier Taiwan, especially if you're importing for the first time.

Need help calculating your full landed cost? We offer all inclusive CIF and DDP quotes get in touch with our export team.


4. Smart Sourcing: How to Stay Competitive Amid Volatility

For U.S. distributors, retailers, or café chains importing directly, it's crucial to partner with a reliable bubble tea manufacturer who not only offers competitive wholesale pricing, but also understands the dynamics of international trade.

When evaluating suppliers:

  • Do they have experience exporting to the U.S.?

  • Can they provide stable lead times and regular product availability?

  • Do they offer private label bubble tea options or customized packaging to increase your market edge?

If your supplier offers transparency in documents, flexible MOQ, and export-ready packaging, you're better equipped to manage risk and build a more predictable supply chain.


Final Thoughts

The real cost of importing bubble tea ingredients to the U.S. isn’t just about product pricing — it’s about the total landed cost, including tariffs, shipping, and foreign exchange factors. As the market becomes more competitive, even a 3% cost difference can affect your pricing power.

Whether you're a startup bubble tea brand or an established distributor, staying informed on these economic shifts will help you protect your margins and plan your sourcing smarter.

Looking to import from Taiwan? We’ve helped U.S. businesses of all sizes build efficient bubble tea supply chains. Request a quote or ask about samples.