Salesforce Stock Plunges 4.11% on New Tariff Concerns

On April 4, 2025, Salesforce's stock dropped by 4.11% in pre-market trading, reflecting investor concerns over the potential impact of new tariffs announced by U.S. President Donald Trump. The tariffs, set to take effect on May 2, 2025, will impose a minimum 10% tax on all imports and additional retaliatory tariffs on certain countries, including China. This move is expected to significantly affect e-commerce software providers, as it will increase the cost of importing goods, particularly from China.

Analysts from bank of america, led by Brad Sills, have highlighted that e-commerce software providers like salesforce are at high risk due to the new tariffs. The U.S. government's decision to end the low-value exemption for small packages from China and Hong Kong will further exacerbate the situation. This exemption previously allowed packages valued below $800 to enter the U.S. duty-free, making it easier for international manufacturers to ship directly to American consumers. With the exemption's termination, packages from China and Hong Kong will now be subject to varying tariff rates, increasing the operational costs for companies like Salesforce.

Salesforce's commercial cloud is estimated to account for 7.5% of its total subscription revenue in the 2025 fiscal year, with a similar revenue distribution between international and U.S. operations as Shopify. While Adobe's direct e-commerce revenue through Magento is less than 1% of its digital experience revenue, its creative business, which is indirectly related to e-commerce, may also face some negative impacts. Global-E Online, on the other hand, is considered to have a lower risk exposure as only about 1% of its GMV is expected to come from mainland China and Hong Kong, ultimately entering the U.S. market. Other e-commerce software providers facing significant tariff risks include BigCommerce Holdings and Lightspeed POS.