Cettire Warns 40% Revenue at Risk as US Ends Duty-Free Imports Under $800

US Tariff Changes Shake Up Luxury E-Commerce

Cettire Limited, a prominent global luxury online retailer, has issued a cautionary update following a significant shift in US import tariff policy. An Executive Order recently signed in the United States removes the longstanding duty-free de minimis exemption for goods valued under US$800, effective from August 29, 2025. This change means that shipments previously exempt from import duties, regardless of their country of manufacture, will now incur tariffs upon entry into the US.

Revenue Exposure and Immediate Concerns

For Cettire, the implications are material. In the months of May and June 2025, shipments to the US accounted for approximately 40% of the company’s gross revenues, with the majority of these shipments falling below the $800 threshold. This suggests a substantial portion of Cettire’s US sales could soon face additional costs, potentially squeezing margins or forcing price adjustments.

Luxury brands, including some of Cettire’s key partners, have already indicated intentions to raise prices in the US market to offset the impact of these tariffs. This could translate to higher prices for consumers or altered competitive dynamics within the luxury e-commerce space.

Strategic Response and Geographic Diversification

Anticipating such regulatory shifts, Cettire has been proactive throughout 2024 and into 2025, developing strategies to mitigate tariff risks. Central to this approach is the company’s localisation strategy, which aims to broaden its geographic revenue base beyond the US. By diversifying sales across multiple regions, Cettire hopes to reduce dependency on any single market vulnerable to sudden policy changes.

While the full financial impact remains under assessment, the company’s measured response highlights the complexities luxury e-commerce players face amid evolving international trade policies. The balance between maintaining competitive pricing and absorbing new costs will be critical in the coming months.

Looking Ahead

As Cettire continues to evaluate the ramifications of the US tariff changes, investors and market watchers will be keen to see how the company adjusts its pricing, supply chain, and market focus. The broader luxury retail sector may also feel ripple effects as brands recalibrate their US strategies in response to this regulatory shift.