Tariffs and RMA | Protect Your Reverse Logistics

In 2025, the global supply chain is under siege—not by a single disruptor, but by a potent combination of rising tariffs and increasing return volumes. The once-fluid landscape of cross-border trade has become a maze of customs paperwork, retaliatory duties, and cost uncertainty. Nowhere is this more evident than in return logistics, where the simple act of sending a product back has become an operational headache—and a strategic battleground.

From tightened trade regulations to the rollback of de minimis exemptions, companies are being forced to take a hard look at how they handle tariffs and RMA processes. The old model of lean, global efficiency is fading. In its place is a new blueprint: regional resilience.

Understanding the Tariff Challenge in Return Logistics

Tariffs are traditionally thought of in the context of outbound shipments. But in return logistics, they present a double-edged sword. When a product is shipped for repair, refurbishment, or recycling and then re-imported, it may be hit with tariffs both ways. That’s especially true when dealing with trade partners engaged in reciprocal tariff arrangements.

For example, a US-based company sending a device to a repair facility in China may face duties on both the export and the return import, regardless of whether the product is new or used. Freight costs, fuel surcharges, and administrative overhead compound the financial impact.

Why Return Logistics Costs Are Skyrocketing

The rise in tariffs directly impacts return logistics by multiplying the cost of cross-border movements. Between Q4 2023 and Q1 2024, logistics costs rose by over 13%, disproportionately affecting reverse supply chains.

These hikes are forcing companies to make tough choices: Is it worth repairing and reshipping items across borders? Or is it more economical to dispose of and replace them? Increasingly, companies are opting for regional repair centers to avoid tariff exposure, even if it means higher fixed costs.

The shift is evident in sectors like electronics and automotive, where products frequently circulate for maintenance, part replacement, or recycling. These industries are pivoting to regional hubs as global centers become too expensive to maintain.

The Tariffs and RMA Compliance Dilemma

Beyond the physical movement of goods, tariffs and RMA issues create a compliance nightmare.

Inaccuracies in these fields can lead to customs delays, fines, or outright rejection of the return. The rollback of the de minimis threshold for returns from regions like Hong Kong and China means that even low-value goods must pass full customs scrutiny.

This compliance pressure is leading more businesses to turn to experts in return logistics management to track and validate every step of the RMA process.

Sustainability at Risk but Not Lost

One of the most unfortunate byproducts of escalating tariffs is the hit to sustainability goals. When the cost of returning and refurbishing an item exceeds the value of the item itself, companies are more likely to discard products, adding to landfill waste.

However, businesses that invest in localized reverse logistics infrastructure can better support circular economic initiatives. By processing returns closer to the customer, they reduce emissions, create local jobs, and improve turnaround times.

Leveraging Duty Drawbacks to Offset Tariff Costs

To recover some of the financial loss from tariffs, businesses are turning to duty drawback programs. These allow companies to reclaim duties paid on goods that are returned or re-exported. However, to take advantage of these programs, businesses must maintain airtight documentation and act within strict timelines. Errors or late filings can void eligibility.

The Growing Complexity of Cross-Border Returns

A single error in labeling, HS code classification, or product condition documentation can cause multi-day delays at customs. That means higher labor costs, delayed resale, and decreased customer satisfaction.

This reality has forced many global brands to reevaluate whether cross-border returns are even viable under current trade conditions.

The Tariff Impact on Customer Experience

Tariffs don’t just hurt the bottom line, they impact customers. More than 60% of businesses now charge for returns to offset rising costs, introducing new friction into the customer experience.

Confusing return policies, refund delays, and surprise fees are now common. These erode trust and can lead to increased churn, especially in competitive consumer markets. Manufacturers must carefully balance tariffs and RMA operations with customer satisfaction to protect brand reputation.

Return Logistics as a Competitive Advantage

Despite these challenges, companies that proactively address tariffs and RMA issues are finding new ways to turn return logistics into a strategic asset. By investing in:

• Domestic or regional repair hubs
• Centralized compliance systems
• Smart inventory planning
• Sustainable refurbishing workflows

…they’re positioning themselves for resilience and long-term success.

A growing number of retailers now sell secondhand or refurbished products, capitalizing on the rise of circular commerce. This not only drives revenue but also builds customer loyalty through affordability and sustainability.