Trump's Tariffs

How to Navigate
Global Trade

Trump’s tariffs significantly influence global eCommerce, with effects rippling across supply chains, consumer prices, and market dynamics. Global trade is more complex than ever before,
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Global Trade Strategies

What Tariffs Means for Global Trade

Trump’s tariffs, have significant implications for eCommerce businesses in the U.S. Trump declared April 2, 2025, as "Liberation Day," unveiling a "reciprocal tariff" policy. This includes a baseline 10% tariff on all imports to the U.S., with higher rates for specific countries—up to 34% on China, 20% on the European Union (EU), and up to 49% on others, depending on their trade practices.

The tariffs target nearly $2.2 trillion in annual U.S. trade with Canada, Mexico, and China alone, plus trillions more with the reciprocal policy. This could reduce global trade volumes as higher costs deter imports to the U.S., the world’s largest consumer market.

Navigating Tariffs

9 Practical Steps for eCom Businesses

Trump's tariffs have increased costs for eCommerce businesses by making imports more expensive, squeezing margins and forcing price hikes or shifts to costly local suppliers. Cross-border sales face added duties, deterring customers and complicating logistics. Small businesses are hit hardest, while some domestic sellers gain from reduced foreign competition.

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Audit Your Supply Chain
Diversify Sourcing Options
Negotiate with Suppliers
Adjust Pricing Strategically
Optimize Inventory Management
Leverage U.S.-Based Fulfillment
Tariff Mitigation Programs
Enhance Customer Retention
Monitor Competition & Trends

The De Minimis Rule Could Save You

If your business ships goods to customers in the U.S., it’s important to understand the U.S. De Minimis threshold—a rule that can positively impact your import costs, customs procedures, and overall supply chain.

Impact of Tariffs on eCommerce

Higher Product Costs

Many eCommerce businesses rely on imports—like electronics from China, raw materials from Canada, and produce from Mexico. Tariffs of 20–25% raise costs for U.S. importers, who often pass these on to retailers. A $50 item from China might now cost $60, pushing sellers to either raise prices or take a margin hit. Small businesses, especially on platforms like Shopify or Amazon, are hit hardest as they lack the scale to absorb costs or switch suppliers easily.

Supply Chain Disruptions

Tariffs push businesses to shift production from countries like China, but with 60% of Amazon’s top sellers sourcing there, quick moves to Vietnam or India can raise costs and cause delays. The 25% tariffs on Canada and Mexico also disrupt North American supply chains—U.S. sellers of Canadian or Mexican goods face higher costs unless strict origin rules are met.

Impact on Pricing & Demand

Tariffs drive up prices—e.g., a $200 TV could rise to $240—undermining eCommerce’s price competitiveness. Shoppers may turn to cheaper alternatives, but U.S. production often can't scale quickly. On marketplaces like Amazon, higher prices can hurt sellers’ visibility, favoring competitors who absorb the costs or avoid tariffs.

Opportunities for Domestic Focus

Tariffs give an edge to eCommerce businesses selling U.S.-made goods, which may appeal more to patriotic or price-sensitive buyers. Sellers of tariff-free items (like digital products or USMCA-compliant goods) can benefit as others struggle. Dropshippers may pivot to U.S. suppliers to avoid delays, despite higher domestic costs.

Logistics & Fulfillment Costs

Tariffs can indirectly raise shipping costs as firms reroute supply chains—ocean rates from Southeast Asia rose 15% in early 2025. Uncertainty may lead eCommerce sellers to over- or understock, affecting cash flow and sales. U.S. sellers shipping to Canada or Mexico also face retaliatory tariffs, squeezing margins.

Consumer Behaviour Shifts

As prices rise, eCommerce shoppers are cutting back—online discretionary spending dropped 7% in early 2025. Many are shifting to second-hand platforms or buying direct from manufacturers, challenging traditional eCommerce models.

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Selected Levies Under U.S. Reciprocal Tariff Plan

Country US discounted ‘reciprocal’ tariffs
China 34%
EU 20%
Vietnam 46%
Taiwan 32%
Japan 24%
India 26%
South Korea 25%
Thailand 36%
Switzerland 31%
Indonesia 32%
Malaysia 24%
Cambodia 49%
United Kingdom 10%
South Africa 30%
Brazil 10%
Bangladesh 37%
Singapore 10%
Israel 17%
Philippines 17%
Chile 10%
Australia 10%
Pakistan 29%
Turkey 10%
Sri Lanka 44%
Colombia 10%